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

To: PaperChase who wrote (2556)	10/11/1999 1:53:00 PM
From: carl a. mehr	Respond to of 15615

Let's have more shorts on this stock. We are buying, but the price is starting to go up. 34 will soon be history. humble carl

To: PaperChase who wrote (2556)	10/11/1999 1:57:00 PM
From: Kayaker	Respond to of 15615

Global Crossing Keeps Spending, Much to Analysts' Delight By Michael Brick Staff Reporter 10/11/99 1:06 PM ET Global Crossing (GBLX:Nasdaq) Monday agreed to acquire Racal Telecom of Britain for 1 billion pounds ($1.65 billion), continuing its recent shopping spree and delighting analysts....The Racal purchase adds 4,536 miles of cable wires running alongside railway lines, connecting 2,200 towns in Britain, according to a report on the deal from recent Global Crossing underwriter Salomon Smith Barney. Solly's Jack Grubman, who rates the stock a buy, called the buy "hugely positive" for Global....Peter Treadway, an analyst for Ryan Beck who rates Global Crossing strong buy. He said the purchase makes "tremendous strategic sense." (Ryan Beck hasn't underwritten for Global Crossing.) thestreet.com <requires subscription>

To: PaperChase who wrote (2556)	10/11/1999 2:12:00 PM
From: John Biddle	Read Replies (2) \| Respond to of 15615

. . . 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. I suppose it depends on your point of view. I am confident that GBLX did not over pay for either of these acquisitions. Value is in the eye of the beholder, that's what makes markets. It's not only OK for GBLX and Energis to disagree on the value of the Racal Assets, it's to be expected. If the Racal network fits seamlessly into GBLX's network , and fills in part of their plan with limited or no overlap with existing assets, and that is not true for Energis (admittedly I do not know if this is true but I surmise it may be) you would expect GBLX to be willing to pay more, maybe a lot more. After all, with the right synergy, the immediate benefits to GBLX in terms of efficiency, etc. could easily be significantly greater than they were for Energis. Another good reason for disparity in bids is strategic. If GBLX sees the Racal assets as a strategic fit, then paying more today is reasonable compared to the much higher costs of either going without (potentially ruining their plans) or paying much more for inferior alternatives, or much much more to build it themselves. Not having all the details, I cannot give any better explanation at this point, but I for one am satisfied. Pleased, actually. I think of your and my approach as analogous to that of long and short term investors (not saying anything about your investment style, just making an analogy). The short term investor is very interested in the current price, because it has so much to do with his ability to turn a quick profit. In this game, being penny wise is not only a good thing, it is crucial to success. Now let's take the long-term investor. Once having done the DD and made up his mind on the outstanding opportunities for gain, he's much more interested in insuring that he gets in not so as not to miss the big run up. I see GBLX as taking a strategic, or long term, view and I'm very happy about it.

To: PaperChase who wrote (2556)	10/11/1999 2:27:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 15615

PC: I don't know what the going rate for Telecom companies are but obviously GBLX (aided by Goldman Sachs) and the analyst community think differently than you, ie paying about 4-5 times annual revenue for Racal Telecom. Also do note the deal is accretive, there is no redundancy involved in the deal,MCI uses Racal's backbone to considerable extent in the UK,the market is the second largest in terms of growth, Racal do have positive and healthy cash flow along with 22-40 million pounds in earnings. Also 'assets' in proper hands could do wonders is what I am hearing,we shall see these guys got what it takes to make GBLX a 'player' in the international Telecom arena.