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

To: mts362 who wrote (2555)	10/11/1999 1:45:00 PM
From: PaperChase	Read Replies (4) \| Respond to of 15615

Matthew, the overpaying this time was pretty obvious even to the strong supporters of GBLX. As an investor you have to judge whether they are becoming too aggressive and "loose" with the money when it comes to acquisitions like FRO where there is flat sales in a commodity market with falling prices. Plainly and honestly said, GBLX will either be the next CISCO in their market or they will suffer for a couple of years until they are able to come up with some core growth.

To: mts362 who wrote (2555)	10/11/1999 7:35:00 PM
From: M. Frank Greiffenstein	Respond to of 15615

How to value? I agree with you Matt. GBLX paid four times revenues for FRO. That's a low PSR for a telecom. So many factors to take into consideration: (1) Replacement/enterprise value. How much would it cost to start the same business as FRO and Racal, starting from scratch? Probably much more than four times revenue, and the helluva lot of time. FRO has been around for 100 years! (2) Business fit. Can a moribund business come alive when connected to another business? Of course it can. RACAL fits well into GBLX's plan (assumming legal accounting by RACAL). DocStone