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


To: AurumRabosa who wrote (2077)9/23/1999 9:11:00 AM
From: CF Rebel  Read Replies (2) | Respond to of 15615
 
Ron,

Do you really believe they will buy back shares? IMO, it was a red herring. They pulled out all the stops to help stabilize the share price. Most companies that announce buybacks don't follow through with a full buyback and some buy back none. They'll put the money where it gets the greatest return, buyback or not.

CF Rebel



To: AurumRabosa who wrote (2077)9/23/1999 11:03:00 AM
From: Douglass Smith  Respond to of 15615
 
Ron,

They did not say anything about the stock buyback. They were not asked about it in the questioning either.

Doug



To: AurumRabosa who wrote (2077)9/23/1999 10:16:00 PM
From: Dan B.  Respond to of 15615
 
Hi Ron, I guess they buyback to boost their own share in what they believe is to be a tremendous success story. That they, as someone else posted recently, paid all construction costs of their Alantic crossing fiber with the sale of the first 10% of its capacity, demonstrates the nature of their guidance to believe and DO this stock buyback.

Dan B



To: AurumRabosa who wrote (2077)9/25/1999 11:14:00 AM
From: M. Frank Greiffenstein  Read Replies (1) | Respond to of 15615
 
Interest coverage....

Ron, that 60 million a quarter in debt servicing needs to be in the context of interest coverage. Per the recent debt grading, GBLX has the following interest coverage ratio:

Total leverage pro forma for the merger and the Global Marine acquisition was approximately 4.3x and interest coverage was 4.0x at June 30, 1999.

So they generate four times the cash necessary to cover debt service. That's not bad.

DocStone