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

To: J Gunn who wrote (3410)	12/2/1999 5:45:00 PM
From: TechMkt	Read Replies (2) \| Respond to of 15615

Anybody have thoughts on this? What do we know about Northpoint? Fez ___________________________ Global Crossing Would Buy Rest of NorthPoint, Magazine Says Hamilton, Bermuda, Dec. 2 (Bloomberg) -- Global Crossing Ltd., a two-year-old company that's building a worldwide undersea telephone and data network, would consider buying the rest of NorthPoint Communications Group Inc., Telephony magazine reported, citing Jon Russo, Global Crossing's broadband services director. Global Crossing recently acquired Frontier Corp., which had invested $4.9 million in NorthPoint. Other NorthPoint investors include Microsoft Corp., which has invested $30 million, and Tandy Corp., which has invested $20 million, the magazine said. Global Crossing owns less than 1 percent of NorthPoint, which provides fast Internet connections using Digital Subscriber Line technology, a spokesman said. (Telephony 11/29/99 p. 22) For the Telephony Web site, go to your Internet browser and enter internettelephony.com and press <Enter>. Dec/02/1999 15:50

To: J Gunn who wrote (3410)	12/3/1999 7:06:00 PM
From: cardcounter	Read Replies (3) \| Respond to of 15615

ENE:B-Avg;ENRON COMMUNICATION BEGINS TO TRADE BANDWIDTH WITH GBLX Dain Rauscher Wessels a division of Dain Rauscher Incorporated * Enron Communication announces its first bandwidth trade with Global Crossing. * Enron is in the midst of exiting several "mature" (read: low growth) business segments and using the capital dollars in several new growth segments. * Enron Corp should entice investors with its exciting growth prospects and minimal commodity price exposure. We continue to rate the shares Buy-Average. Enron Corporation NYSE:ENE Rating: Buy Risk: Average Risk Price Target: $ 48 Dec 3, 1999 Price: $37.75 52-Wk Range: $45-$26 Year End: Dec Fiscal EPS P/E 1998A $1.01 37.4x 1999E $1.20 31.5x 2000E $1.50 25.2x 2001E $1.70 22.2x Tr. 12 ROE: 9.70% 3 Yr EPS Gr: 15.00% Shares Out: 713.80 million Book Value: $11.31 Market Cap: $26945.95 million DIVERSIFIED NATURAL GAS/MLPS Mark Easterbrook, CFA (214) 989-1408 mseasterbrook@dainrauscher.com ENE:B-Avg;ENRON COMMUNICATION BEGINS TO TRADE BANDWIDTH Developing A New Market: The DNG group has been in the doldrums in December. We set out to look for ideas that should prosper whether it is cold or warm this winter. Enron's operations are not impacted by commodity price moves. Enron has truly developed into a company that prospers with new business segments that are deregulating. Of course, the best examples are the natural gas and power markets. Enron is the leading marketer and has built up a profitable business in both. Yesterday, Enron announced the completion of its first bandwidth trade with Global Crossing (NASDAQ: GBLX). We believe this is the beginning of another such business segment. With the Telecommunications Act of 1996, this industry is ripe for market forces making the industry more efficient. Trading Bandwidth: The trade is for incremental DS-3 (digital switching; 45 megabits/second) bandwidth between New York, New York, and Los Angeles, California. The company expects to "write" standardized monthly contracts on this capacity. Enron has also announced that it is looking into a San Francisco, California-Washington, D.C. line with similar DS-3 capacity. Enron is plannnig to build out its bandwidth beyond the U.S. borders. It has been swapping its dark fiber capacity for other areas. In 2000, the company should have a presence in Europe, Japan, Asia, and South America. As with several of Enron initiatives, at first there does not seem to be much of a market. However, we believe as companies look to build out their networks, a trading option is less expensive and more desirable than building (and maybe duplicating) infrastructure. As the market gains liquidity bandwidth capacity trading should become a powerful performer. Pricing Point Discovery: The company announced the formation of the "North American Benchmark Segment", which covers New York to Los Angeles, and should soon (May 2000) have an "Atlantic Benchmark Segment", which covers New York to London. Stock Opinion We believe Enron should benefit from the efficient use of capital dollars as management has now sold off several "mature" business lines (interest in EOG Resources and its Portland General subsidiary). In fact, with the growth potential coming from international, energy services, and communications, we believe Enron could post better than 15% EPS growth numbers over the next few years. We are initiating our 2001 earnings/cash flow estimates of $1.70/$2.45 per share. We continue to rate the shares Buy-Average with a 12-month price target of $48. We derive our price target by taking a forward EBIT multiple of 20.0x, which is a premium over its average 12-month range (17.5x) and better than the peer group average currently at 14x. We believe the premium is warranted due to the stellar growth prospects for the company. We advise investors to purchase the shares on its recent pullback. Company Description Enron Corporation is the world's leading integrated natural gas and power company. Enron is divided into four business segments: Transportation and Distribution, Wholesale Energy Operations and Services, Retail Energy Services, and Communications. The company is headquartered in Houston, Texas, with a Web site address of www.enron.com.