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

To: Tim Cruise who wrote (1468)	8/10/1999 10:23:00 AM
From: AJ Berger	Read Replies (2) \| Respond to of 15615

damn, this price is shocking I got stopped out at $50, but never would have believed we'd ever revisit the $20's. I guess the whole telecomm industry will be under pressure until they explain how they plan on making money in this new world of low and no cost long distance.

To: Tim Cruise who wrote (1468)	8/10/1999 11:17:00 AM
From: M. Frank Greiffenstein	Respond to of 15615

Type O Negative.... Better call Red Cross and ask for donors, LOL. Rare blood type too. GBLX will now have to pony up more money and stock, which will of course cause stock to collapse further, requiring more money and stock...well, you get the picture. Me, I decided to start buying GBLX and QWST for my SEP/IRA. I've been buying these only for my trading accounts, but at these prices, I just can't resist taking the long view. DocStone

To: Tim Cruise who wrote (1468)	8/10/1999 7:47:00 PM
From: Teddy	Respond to of 15615

hi Tim, it seems to me that The Street fears something that the Companies (and me) are not too concerned about. I am so concerned that i plan to spend three days at this week before heading back to the beach. Anyway, this came over the DJ Newswire today (aka: The Wall Street Urinal). I copied and pasted the actual text: the are several spelling, grammatical and factual errors. Anyway, here's an article to read (i bolded a small part) Dow Jones Newswires -- August 10, 1999 DJ CNBC's FABER REPORT:Is Global Crossing,Frontier Still On? NEW YORK (Dow Jones)--Although Global Crossing Ltd.'s (GBLX) shares have fallen precipitously since it first announced plans to acquire Frontier Corp. (FRO), the two companies are not considering calling off the deal, said CNBC reporter David Faber. Advisers to both companies are watching the drop in Global Crossing shares, which have fallen from about $63 a share when the deal was announced to about $50, but are waiting until the pricing period in the last week of August before deciding what to do, Faber reported Tuesday. If Global Crossing shares remain at current levels during the pricing period, Global Crossing may have to offer more stock or cash or hammer out a new deal, Faber said. The following report was aired on Tuesday on CNBC-TV by CNBC reporter David Faber: While the market may be rendering its own verdict on the fate of Global Crossing's plans to buy Frontier Communications, there have been no talks between the two companies about a halt in their plans. Advisors to both companies tell me they are certainly watching the appreciable drop in Global Crossing's shares, which have taken the value of this deal down from $63 in Global Crossing's stock to a bit less than $50 per Frontier share. That's because Global Crossing moved swiftly past the bottom of the collar on the deal of 34.56. Global Crossing and Frontier have been hit today in part because of a new round of price cuts - that we've been telling you about - by companies that provide long-distance service. Yesterday MCI, today Qwest. You may recall that Frontier itself missed its last quarterly earnings estimate due in part to pricing pressure in the long distance business. Global Crossing, it should be said, may not face the same threats because it does most of its business across the border, higher margin, not as much competition right now. Right now as well, Frontier and its advisors are playing a waiting game. The pricing period for this deal will not begin until what is likely to be the last week in August. At that point, if Global Crossing's share price is where it is currently, Global Crossing must either address the diminished value by adding more stock or, perhaps much more likely, more cash, or Frontier can walk away. Until that pricing period gets a bit closer, Frontier's advisors tell me, there isn't much to talk about. At present investors are talking about values, though. Assuming that it does buy Frontier, the combined company is trading at close to 13 times earnings before interest, taxes, depreciation and amortization, on a par with the likes of industry leader MCI WorldCom. It is that valuation that seems to have suddenly become suspect with at least some of Global Crossing shareholders. One who is not concerned about valuation is Mark Atanazio, who heads leveraged finance at Trust Company of the West. The company was among the original investors in Global Crossing and still holds 5 million shares. In fact, Atanazio told me he's buying today because he believes with or without Frontier, Global Crossing's management's team will succeed in delivering results and growing the EBIDTA at a rapid rate. As to whether Global's stock price has been hurt by rumored selling from insiders, company insiders are prevented from selling until the Frontier deal closes. Many of the largest original investors, including the TISCJES and CIBC Oppenheimer, are similarly precluded from selling. They had previously been locked up until August 13, the one-year date of Global's IPO. Even if Global Crossing's stock price does rebound from here, it's not likely to reach the price U.S. West paid for 10% a few months back. Remember, as part of its now-broken deal to merge with Global Crossing, U.S. West spent $2.4 billion or 39 million for Global Crossing shares. The current value, a little over one billion dollars - that was not a good investment.