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

To: John Biddle who wrote (2560)	10/11/1999 2:31:00 PM
From: PaperChase	Respond to of 15615

I think a lot of investors are looking at the historical operating income of the Racal unit and assuming this can only get better going forward. While the future is not written in stone, one of the reasons RACAL dumped the unit was the high marketing costs for the unit to compete. Although GBLX brings strategic complimentary assets to the purchase that RACAL does not have, GBLX will still incur the increasing marketing costs to compete in this market. In a commodity market where the product price is falling and marketing expenditures are increasing just to "run in place", the strategic acquisitor must play hardball and temper one's bids.

To: John Biddle who wrote (2560)	10/11/1999 7:42:00 PM
From: mthomas	Read Replies (2) \| Respond to of 15615

You read my thoughts Sunday night....these guys may not care too much about shareholder value at this moment in time, but down the road it will look like they were doing the best they could to increase shar-HOLDERS' value, not momentum players' value. I figured maybe 4 of the last 11 points up were attributable to momentum traders, and was quite pleasantly pleased to see such a strong bounce this morning after declaring another acquisition. How often can that kind of money be spent by such a heavily indebted player and still walk away with the first day keeping most of the previous day's gains? I just hope this equity stays above 30 for the next week or two, because when earnings come out, I have a pleasant feeling we will all see a masterful stroke. Could the buzz about takeover have been a red herring to keep the losses minimal once the acquisition was announced? Could the taking on of USWest have been a double play to either get the company or get a breakup fee? Was not Bell South behind QWEST to go get USWest, and keep GBLX out of their backyard? We have the sharpest management team here comparable to QCOM and GSTRF. These guys and women are really on a roll. I just hope the power does not distort their vision. I will meditate on that and keep the light on their strength of character to overcome the soon-to-be-evident global dominance in their niche. Nobody has what GBLX has. Except GBLX. Share-HOLDER, not momentum player on this one.