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Technology Stocks : Frontier - FRO

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To: thebeach who wrote (199)3/22/1999 3:51:00 AM
From: Don Edgerton  Read Replies (1) of 245
 
Over the next few months, assuming no change in GBLX the arbitrage discount will lessen. Ig GblX continue to rise, once GBLX goes through 56 and change FRO should move up $ for $. I noticed on Friday, FRO moved up more then GBLX.

At current time FRO is he better buy because of the discount and some slim possibility of another offeror.

As I see it, little or no regulatory problem, but a possibility of an announcement to sell the FRO local service which is a slow growth business. This would provide cash to pay down debt or finance future needs. GBLX is planning a third transatlantic cable I believe several years out.

I switched part of my GBLX to FRO. Because of the steep run and the estimated 6 months or so to close, am considering writing October 60 covered calls on GBLX - to pay me for the wait.
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