Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (16246)	1/25/2000 12:41:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

LoF, I wanted to see how many people could tell me why GBLX could not be a gorilla in its present form. Why? This isn't the Olympics of G&K when we subject ourselves to some sort of test you decide to impose for the helluvit. If you choose to explain why GLBX could be a Gorilla in its present form, I'm sure you'd get plenty of genuine, thought-provoking discussion. And since you're bordering on being rude (not there but close) it would be wise of you to remember that there are a lot of people who have been posting here for nearly a year. You're walking onto a play ground that we've been taking care of for a year, so think of yourself as someone walking up to a group of ten people in the middle of the play ground, all who know each other very well but none who know you. Take the time to appreciate our various backgrounds and knowledge base. Before you get into a discussion with the likes of Uncle Frank about options as if he doesn't know anything about them, learn something about him first. And if you think everyone is going to agree with you that LEAPS constitute a LTB&H tactic, as an owner of LEAPS contracts I'll always insist that there is no LEAPS contract that is long enough to meet th LTB&H criterion in my book. In summary, please feel free to join us in an enjoyable discussion. Discuss with us rather than test us. Point out our mistakes nicely instead of making comments like "What a joke!" Do that and we'll do our best to treat you with the same sense of goodwill and goodheartedness. Choose not to do that and you'll likely be patently ignored. --Mike Buckley

To: SecularBull who wrote (16246)	1/25/2000 12:44:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

GBLX isn't a Gorilla, because they don't have significant proprietary technology. They aren't a King because they don't have twice the market share of the next largest player. The only segment where they might lay claim to a royalty title, might be cross-ocean cable. Is that a big enough segment to house a King? I don't think so, but won't argue too strongly over it. Best, John

To: SecularBull who wrote (16246)	1/25/2000 1:30:00 AM
From: Brent Hogenson	Read Replies (1) \| Respond to of 54805

I don't believe that GBLX can ever be a Gorilla but it can be a very powerful King. There are huge advantages in being first. It is my understanding that they built their first Atlantic Crossing for 750 million, later they dropped another cable doubling their capacity for only 75 million. They can repeat this cost structure as capacity demand comes on line around the world. A new carrier would have to come up with 750 million to build an Atlantic Crossing and would be competing with GBLX's additional 75 million lines. Another trick that GBLX has in their business plan is they drop the rates they charge by 50% every year. This is causing demand to more than double. So they actually make more money by charging less. (This of course happens after they have recouped their initial investment - the first line always costs more) If I remember the Gilder Telecosm conference correctly, they sold less then 10% of their capacity on their initial Atlantic Crossing cable and recouped all of their cost. Another problem that competitors have is dropping their cable in a lot of areas around the world. Not every country in the world is eager for companies to drop cable anywhere they want, especially after they are already hooked up. Do you think anybody that wants to can bring cable right up the beach in China? I also read that carriers are having problem getting cables to socialistic countries (Telecoms are still owned by the government) - Italy for one, not to mention the good ole U.S. of A. I read about six months ago that the Costal Committee was up in arms about GBLX dropping cable in Monterey Bay California. IMHO, GBLX can never be a Gorilla. It is in a commodity business, but there are a few twist in this business that enable the first to enter to get the Lion's share of the market and profits. GBLX is years ahead of the competition. They bought 35% of the world's cable laying ships when they bought Global Marine from Cable and Wireless, now another 30% of the ships that Tyco owns are going to stop laying fiber for other companies. It seems that they want to start laying their own fiber network. So now where are GBLX's competitors going to get the boats to build a network. It takes two years to build these boats. Plus doesn't Tyco's move make this a business that is worth looking into? Then we have Global Centers that will soon be spun off to compete with Exodus (note - EXDS market cap is greater than half of GBLX's). GBLX has top rate management (Hindery of TCI and AT&T fame) running the show. And the fact that Exodus buys air time on GBLX's cables leads me to believe that Global Center will be the low cost provider. There is a reason George Gilder made this stock his number 1 Idea Stock. IMO, GBLX will never be a Gorilla but it will be one hell of a King.

To: SecularBull who wrote (16246)	1/25/2000 5:50:00 AM
From: DownSouth	Read Replies (1) \| Respond to of 54805

LOF, You obviously have much investment experience and could contribute mightily to this thread. You say you have RTRFM. Great. Why not present your own opinion about GLBX and LVLT potential gorillaness and/or royalty? I would love to hear it. Now, hang around the thread, and learn our way to discussing topics of interest and treatment of one another. You have a bit to learn when it comes to how we have conversations. I know that your posts would be perfectly acceptable on almost any other thread, but not here. Your knowledge is welcomed. Your manners are most certainly not. Btw, there are no LEAPS long enough to be LTB&H.