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

To: R Sandvig who wrote (2601)	10/12/1999 2:02:00 PM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 15615

Push and pull of news! RS, I am surprised there was no selloff on the downgraded debt rating. But this was overcome by the MP-3 news. My, how things have changed. The association of GBLX with a speculative concept stock like MP-3 is given greater weight than a negative debt rating. This really is a new paradigm. Although I am an avid GBLX fan, I am now becoming worried about cash flow and debt service. Maybe Ron Starr was right <g>. DocStone

To: R Sandvig who wrote (2601)	10/12/1999 2:19:00 PM
From: JDN	Respond to of 15615

Dear R: Not necessarily. First off what is their current rating? Secondly in this case its a capacity thing related to rapid expansion not a earnings deterioration. JDN

To: R Sandvig who wrote (2601)	10/12/1999 3:35:00 PM
From: PDL	Respond to of 15615

I agree that normally the S&P credit watch warning would take the stock down, but the GBLX story is so compelling, I suspect that sophisticated investors aren't worried. GBLX has, I believe (I can't remember where I saw this), indicated that they expect to do additional financing (secondary offering or private placement) and I don't think there would be any major problems with them raising sufficient equity capital to assuage S&P. The market may hiccup if/when that event takes place but GBLX has demonstrated a great vision and an ability to execute quickly and efficiently. All of this allows investors to shrug-off something like this S&P credit watch report. JMHO.