Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Frank A. Coluccio who wrote (1736)	9/6/1999 9:44:00 PM
From: Teddy	Read Replies (2) \| Respond to of 15615

Frank, i was looking at your math on the Exodus purchase of capacity from Global Crossing: Message 11171165 and i agree that the wording in the PR is very confusing. Maybe Exodus has the same PR writer as GBLX. <insert smile here> I would like to leave off the what they are calling 5.1 Gb/s and what I come up with as 2 Gb/s discussion and look at the price. I thought one Gb/s equals 6.4 STM-1's. If that be true, than the stated 5.1 Gb/s would equal 32.64 STM-1's, right? If we divide the $105 million by 32.64 we get $3,216,911.76 per STM-1. I would expect some discount on a $105 mill purchase (and we think Exodus is a repeat customer too). The think i can't figure out is, why is the average price 3 times the price Barron's said? ...Jefferies & Co. analyst Gregory P. Miller... writes that a transatlantic STM-1 line's cost has slipped from $12 million in early '98 to about $1 million today. Cable resales announced this year by Pacific Gateway suggest that the slippage continues. In April, the firm announced the sale of 17 STM-1 lines to Williams Communications for $30 million, about $1.8 million each. Last month, Pacific Gateway disclosed the sale of another 5% of its Atlantic fiber -- which would be about 25 STM-1 lines -- for $35 million, suggesting that prices have fallen below $1.4 million per line, or 22% in three months... The only possible explanations that i can think of for this huge discrepancy is: 1: Barron's was way wrong. 2: Pacific Gateway is not too bright. 3: Exodus got ripped off big time. 4: Global Crossing has some fast talking sales people. Frank, can you give us an idea on the real going prices for trans Atlantic and Pacific circuits? thanks, Teddy

To: Frank A. Coluccio who wrote (1736)	9/6/1999 9:49:00 PM
From: Morgan Drake	Read Replies (1) \| Respond to of 15615

Frank - can you provide a list of reasons why the GBLX-FRO deal would or would not go through? I've read recently that the arbs have bought FRO and shorted GBLX. Folks have said that if the deal fails, FRO stock will drop by perhaps 20%. If that's the case, then the arbs and institutions will certainly vote for the merger. However I am concerned about this Barron's article adversely impacting GBLX's stock price, causing it to fall and giving concern to FRO holders about the amount of value they were led to believe they would obtain. Thanx.