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

To: gruetz who wrote (5552)	4/17/2000 8:46:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 15615

Nice thing to see,, too bad it could not help farther erosion from happening,, maybe it will be more widely read tomorrow,,, Luck!

To: gruetz who wrote (5552)	4/17/2000 8:51:00 PM
From: gruetz	Read Replies (1) \| Respond to of 15615

excerpts from Grubman's report continued: Bandwidth names are also suffering in the downdraft of the NASDAQ market. Table 4 for these bandwidth names indicates a 31% cost of equity and an implied risk premium of 24%, which again is unjustly high given that the textbook equity premium is 8.4% or lower. We have included the implied revenue levels in 2009 that the current stock prices are reflecting. At current stock prices, the broadband group is implying an absurdly low collective 2.8% market share; our models imply a very conservative 6% market share. We believe the global networks that companies such as Global Crossing and Level 3 are building will allow these companies to gain more than 2.8% market share. implied cost of equity/implied risk premium/SSB est of 2009 revs/2009 revs implied by current price GBLX 33.1% 24.7% $35.9bln $9.7bln LVLT 30.1% 20.7% $27.4 $13.5 Q 33.7% 29.7% $36.0 $$22.1 2000-2009 rev CAGR current SSB est and implied by current price GBLX 20.3% 5.5% LVLT 38.2% 28.7% Q 21.5% 15.7% Q 's numbers are reflecting a standalone basis (ie. w/o USW merger)