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

To: J Gunn who wrote (1804)	9/8/1999 1:08:00 PM
From: quidditch	Respond to of 15615

One thing ahhaha might be correct about is the short covering. The volume is astounding. What makes even less sense, and me hesitant to think that this price action is necessarily the market applauding the Asian Crossing JV, is that the arbitrage now between FRO and GBLX share prices assuming the deal is consummated is way off kilter, assuming, what, 2.05 GBLX shares for each FRO share. For shareholders meeting scheduled later this month, the market right now is discounting the risk of non-consummation. Technical factors abound. Regards. Steven

To: J Gunn who wrote (1804)	9/8/1999 1:29:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 15615

If Att was taking on this project, I would be constructive, but Att is tapped out too. They bought lots of stuff and now they have to start making it pay. They're in no position to do any more deals. GBLX is in the same situation, but the financial integrity of their deals is highly suspect. Often it is the digestive process which is seen in price as a bear market. The companies chug along and make progress, but don't make a profit. Great expectations pushed stock price through the roof, so a positive result is realized in declining stock prices. Global is a utility. They can never be a beneficiary of added value effort. They're a discounted future income stream cash cow, that is, once they have everything in place and if they can survive the tough going. It has been easy up to now since everything is accommodative, but costs and competition won't go away. There isn't a soul on this thread who has factored rising interest rates into the company evaluation. Rising rates must rise to a point high enough to discourage operators like GLBX from rapidly building the system. $1.2 billion is enough to cost the company $2 billion in losses. It will take at least $8 billion to build the Asian net they have in mind and that will have to be borrowed at ever higher rates. Consider the quantity of debt TCI accumulated and you will have what GBLX will be forced to imitate. MSFT and Softbank are providing advertising money for their own prurient interest. MSFT has no business investing in this project. What are they, the world's new financing bank or is it a statement that the end is near for MSFT? GLBX won't be able to go back to them for a dime.