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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (1357)	7/17/1999 10:59:00 AM
From: Teddy	Read Replies (3) \| Respond to of 15615

hi Frank and Ira, yeah, i guess it might not be a bad idea for me to expand upon some of the things that lead to my first (and hopefully last) public criticism of the strange cast of characters in the Global Crossing Ltd. show. Basically, my concerns are not related to what the company is doing, but what they are not doing: providing investors with sufficient detailed information on current operations and the future direction of the company to make an informed investment decision. (more on that later) Here's a few of the things i've been thinking about: 1. There are currently more than 13 various Presidents and Vice Presidents (not counting directors and C*s. Each of these people have excellent backgrounds/ experience. I understand the reasons for all the wholly/ partially owned subsidiaries. Maybe they are all very busy behind the scenes, but from where i sit it is difficult to discern their contribution. 2. Bob Annunziata. When Annunziata took the stage the program stated the he would “take the company to the next level” and would attract a “wider following on Wall Street.” Six months later the exact opposite has happened. What is the “next level” and how are we going to get there? Wall Street: Goldman Sacks removed GBLX from their Recommended List and DJL started the stock as Hold. Bob's accomplishments in his first six months? Don't put the Frontier acquisition on the list: according to the S4, Background of Merger page 46, talks were well advanced months before Bob's appearance. I'm not going to mention USWorst and i hope that after this week the two companies are never mentioned in the same sentence again. Bob's pay: his package (detailed in the 10K) is a little rich, but justified if he performs. GBLX stock from Bob's grand entrance to Friday is up about 70%. I can't think of anything that Annunziata has done that is note worthy. Maybe that will change once the FRO-USW-QWST Mid Summer's Nightmare is over. 3. This is my main concern. THE COMPANY'S PR IS TERRIBLE. Calls/ emails from investors are not returned. The company did NOT issue press relating to several transactions that the Media thought were news worthy and it is almost impossible to get anyone connected with the company to comment on them. When the company does issue a press release it frequently contains so little information that it is practically meaningless. Here's a few recent examples: Lack of information about new cable. Can anyone answer any of these questions: Message 10450784 Telergy. Some deal happened here. Not a word from the company on this: Message 10327561 Primus Satellite Capacity Purchased for $25 Million. Global Crossing did not issue a press release concerning this transaction. Does anyone have any idea what GBLX is going to use this for: Message 9738390 Mexico. Once again, an interesting story, buy GBLX did not issue a PR. Message 10086941 I guess the company must have actually made the deals mentioned above (or they would have denied them, right?). ISN'T IT REASONABLE TO EXPECT THE COMPANY TO ISSUE A PRESS RELEASE? Here's the list of PR's. I am not at all happy with the lack of information that this company is providing. globalcrossing.bm Oh, maybe i should share my thoughts on last Monday's PR (...edited. my comments in italics: GLOBAL CROSSING REVENUES TO EXCEED ANALYSTS' ESTIMATES .....announced today that its second quarter revenues are expected to be approximately $190 million, exceeding analysts' estimates and the company's internal targets. First, it is not stated what the estimates or targets were: are they over by $1 or $100 million? Next, in each of the last two quarterly CC, the company stated at this stage in network build out revenue per quarter can swing wildly and in no way can be used to judge company performance. They repeatedly stated that the focus should be on Cash Flow. There is no mention of Cash Flow in this PR. Continuing robust sales and circuit activations on the company's Atlantic Crossing 1 (AC-1) cable, along with associated terrestrial circuits, are responsible for the robust revenues. What terrestrial circuits were activated during the last quarter? I guess it is sections of PEC. I don't want to have to guess.* The company noted that, when final second-quarter results are reported later this month, a number of one-time expenses related to merger activity and financing will affect reported operating results. Not that it matters much at this stage in the game but, does that mean that the estimates of earnings of $.01 per share are too high? "Our sales and customer base have continued to expand during the quarter along with the explosive demand for transnational, global telecommunications," said Bob Annunziata, Chief Executive Officer of Global Crossing. Name one new customer. I'm sure there are several. Maybe mentioning in a PR a few of the large number of world class companies that has purchased/ lease capacity every once in a while would be a good thing. As we know, many of the companies that a competitors are also customers. ..... we are particularly gratified by the advance sales we have closed on systems other than AC-1 as we speed them to completion. Pacific Crossing, Pan European Crossing, and Mid-Atlantic Crossing are developing significant sales backlogs that will become revenue after those systems enter service later this year. We're also building significant backlog in our flexible Global Network Offer, which will become revenue on AC-1 or our new systems as customers activate capacity where they need it." Backlog was over $1 Billion. How “significant” were the additions this quarter. The rest of the PR is more of the same. Maybe once the FRO-USW-QWST saga is over we will be able to get a clearer picture of what is going on. Well, i feel better now.<G>