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

To: DWB who wrote (4389)	2/21/2000 5:59:00 PM
From: Robert Sheldon	Read Replies (2) \| Respond to of 15615

I find it amazing that anyone who understands what GBLX is doing (i.e. building a world-wide fiber network, incorporating merged companies, etc.) is surprised that they are spending a lot of money right now. Can't they see that the buildout phase eventually ends/diminishes? No - people are blind to GBLX, and do not understand it . . . My 2 cents: The quarter was fantastic with SEQUENTIAL EBITDA rising 23% and 18% for revenues plus cash deferred contracts. Who else is growing this fast? Hardly any company (this size) on the planet. So why is the bottom line a bit soft? As they mentioned in the CC, they are sacrificing current earnings for future growth - this is really my kind of company. WHAT ARE THEY SPENDING IT ON? Well, take a look at what they listed for Global Centers leased space . . . they have been giving analysts guidance of 600,000 square feet but looky here! 1,300,000M!?! Good Grief – this and another 10 centers on the way. As I speculated, GBLX is keeping its hand close to its chest. This announcement effectively doubles my low end estimates (see my post Message 12541037 ) for Global Centers when they are spun off. Fun fun fun. Another area of positive shock from the call was that they are going in with L3 on the ‘Fire Hose of the Atlantic'. The “old” AC-2's time line was to be completed by Q1 2002 . . . but demand is so robust that they are buying their way into the capacity now (the old plan was for 80Gbps upgradable to 2.5Tbps). They also mentioned that they will probably go ahead with “AC-2” as soon as new all optical equipment is available . . . GEEEEEEEEEEEEEEEEEEEEZZZZZZZZZZZZZ! One last gem . . . 3 new OC192's, for a total of four in the Northeast! All this when the original plan called for 1 OC192 at the end of 1999. The update three months ago called for three OC192s . . . now we have FOUR in place. Good Grief Charlie Brown. Add to this negiotations for capacity sales on the Atlantic crossings of very large multiple STM-16s in a single sale and the fact that these “very big deals” are also balanced out by the PC-1 where there is NO competition and we should “really” see a ramp in revenues. Talk about a ramp in DEMAND. Anyway, this just allows folks I look out for to get another chance at GBLX on the cheap.