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

To: TechMkt who wrote (2115)	9/24/1999 11:14:00 PM
From: mthomas	Respond to of 15615

An astute treatment of debt by White-Rabbit, addressing Starr----. Gee, I have been extremely busy and did not have time to read the nonsensical points as Mr. Starr seems intent on posting(he is probably on some other board at this time, venting similarly). Here is something to read: To: mthomas From: white-rabbit Tuesday, Sep 21 1999 9:20AM ET Mr Thomas, I can't post messages on the board; not a paying member. But I feel I had to do some justice to Mr Starr's comments. Mr Starr obviously hasn't done his homework. US$ LIBOR range between 5.4% and 6%, depending on maturity. LIBOR + 300bp is market rate for revolver for company with GBLX's ratings (Ba2/BB+). Ba2/BB+ is junk rating, but nevertheless, spreads for Ba2/BB+ is about 250 (over T), depending on maturity, which comes to about the same as LIBOR + 300. Moody's rate GBLX Ba1 for senior secured. GBLX will continue to raise money for its network development on a project by project basis. Project financing can achieve far superior rating than parent GBLX, if project is appropriately collateralized, it can even take on AAA. No need to worry about paying through the nose for financing. In start-up businesses cash flow is what's important, not net profit. Debt service comes from free cash flow, which is EDITDA less capex plus working capital (GBLX is positive net working cap, i.e., customer financed business). Plus, don't forget, FRO is rated A3/A, which is far above the minimum invest grade of Baa3/BBB-. The merged entity will be somewhere in between. To: white-rabbit From: mthomas Friday, Sep 24 1999 11:00PM EST -Preview- My apologies for not being able to reply sooner, white rabbit, but classes just started last Tuesday and I suffered the loss of a family member the same day. I do appreciate your treatment of the debt picture with GBLX and FRO, as I do not have the background to investigate this side of things. I invest according to what calibre the management team appears to be, the technology, and the politics of the situation. The business models are certainly a part of this as well. I know there will always be ways to pick a good company apart, but it is the overall picture that makes me risk my money. I believe in the GBLX picture, it is as simple as that. I believe the management will know better than I as to how to manage the affairs of this company. I know that the ATT and other bad boys club members have tried their best to screw up the GBLX game, just like Nokia and Ericcson tried to screw up Qualcomm's game. I feel there is great similarities in this analogy. Both GBLX and QCOM are moving onto turf previously undisputed as belonging to the big bad boys club. Tough, move over, GBLX just arrived, make room, or disappear. Anyway, I hope my ranting reimburses you for your time in writing me. I am only subscribing six months at a time, btw, but this board is probably one of my better investments!!! Keep lurking. Martin

To: TechMkt who wrote (2115)	9/24/1999 11:52:00 PM
From: tony sidhu	Read Replies (1) \| Respond to of 15615

FezKoprucu , Hi, i have a question regarding GBLX stock price movement. ALthough, i agree with the fact that GBLX has held very well, in fact was up on the thursday with the mkt down 200+. The point is that on a day like today why was the stock price lagging. I read something to the effect that tax loss selling will take place till Sep 30th. GBLX seems to me to under accumulation but the way it is reacting to the market it seems it want to stick around the 25 (+/-2pts) for the last week and a half. can you please provide your views. Long GBLX @ 25 and holding APR 30 calls... thx tony

To: TechMkt who wrote (2115)	9/25/1999 8:04:00 AM
From: Teddy	Read Replies (2) \| Respond to of 15615

Fez, i don't follow Sprint too closely, but I did a little math and the idea of a three-way deal in which MCI WorldCom bought the Sprint PCS wireless business and another company took the long-distance network... Interested buyers might include Qwest Communications (QWST: news, msgs), Global Crossing (GBLX: news, msgs) or Level 3 Communications (LVLT: news, msgs) seems pretty unlikely to me. I looked a some of Sprint's filing and they break out results into PCS Group (the wireless stuff) and FON Group (everything else). Results for the six months June 30, 1999 (in thousands): Revenue FON $8,416 PCS $1.340 Income FON $792 PCS ($1,160) Now, if we double those FON Group numbers to get a full year's results (I know this is not a very acurate way to do it, but it is close enough to make my point without spending too much time) we get: Revenue $16,836 Income $1,584 Now, what multiple do we need to apply to those numbers to see what it might cost to buy just the FON Group? I think 2 times Revenue or 20 times Income would be too low, but using either of those methods puts the price well north of $30 Billion. That's 50% above LVLT's market cap. QWST should have enough headaches trying to get regulatory approval for the US Worst merger. GBLX just got some really nice US assets from Frontier. From what i've been reading, it seems like they now looking to build out, partner or buy the "last mile" in US and other countries.