Facts about GBLX....
from the insider review.
Global Crossing (Nas, GBLX, 29 7/16)
This week's pick Global Crossing (Nas, GBLX, 29 7/16) is as exciting as its motto. One Planet, One Network. And they're serious. Our world is changing and communication boundaries are being broken down at an exciting level. more and more each day people and businesses are able to communicate freely with anyone, anywhere. Our feature company is building the world's first independent global fiber-optic network that will make the global "e-conomy" operate faster, cheaper and more efficiently then ever before. This also has made them by far the most diminant force within this arena, and they are getting bigger. Their network and proThe current network contains 97,200 announced route miles It serves five continents, 24 countries and over 200 major cities. But what is most compelling is that through its network, the company's telecom and internet product offerings will be available to over 80% of the world's international communications traffic.
GBLX is headquartered in Bermuda and has principal offices in Los Angeles, New Jersey, New York, Miami and London. The company operates a family of seven partnerships and companies that provide products and services across the GBLX network.
- Global Center is the company's web hosting division. The center delivers the only integrated commerce solution designed for scale in the global "e-conomy". It provides its customers with the infrastructure to maintain high-traffic, high-demand web enterprises. Currently Global Center is managing such large scale sites as Yahoo!, The Motley Fool, Ziff Davis, MP3.com, eToys, About.com, and Biztravel.com.
- Global Crossing Telecommunications Center provides integrated communications products and services ? including Internet, IP and data apps, long distance, local telephone and conferencing ? to the enterprise market. The division serves many Fortune 100 companies with comprehensive IT solutions, from providing basic networking needs to advanced application and service management. This division also includes Global Crossing Conferencing. You can see it in action at www.themeetingson.com
- Asia Global Crossing is probably the most exciting of the seven. It's a partnership among GBLX, Softbank, and MSFT created to provide the Asia Pacific region unprecedented access to a seamless global broadband network. assets include GBLX's 64% interest in Pacific Crossing-1, a subsea system connecting the US and Japan, and East Asia Crossing, a 17,000-km fiber optic subsea system that will link Japan, Taiwan, Korea, Hong Kong, Singapore, Malaysia, the Philippines, and China. On March 31st the company announced it will be doing an IPO of AGC common stock.
- Global Access Network is a state-of-the-art network of approximately 1,200km route will link Tokyo, Osaka and Nagoya and with the cable stations of Pacific Crossing (PC-1)and the rest of the world. These three cities constitute more than 90 percent of Japan?s international telecommunications traffic.
- Hutchison Global Crossing is a 50/50 joint venture that combines Hutchison Whampoa's existing fiber optic telecom network and certain Internet-related assets in Hong Kong with GBLX's international cable capacity and inventory of Web hosting, Internet applications and data services.
- Global Marine Systems is the world's most experienced marine engineering service company specializing in the planning, installation and maintenance of undersea fiber optic cable systems. They operate the largest fleet of cable laying vessels in the world and service over 1/3 of the planets undersea cable. You can read more at www.globalmarinesystems.com.
- Incumbent Local Exchange Carrier (ILEC) services segment consists of 34 regulated telephone operating subsidiaries in 13 states, serving over 1 million access lines. These services are marketed under the name Frontier Communications, a Global Crossing company. You can read more on ILEC at www.frontiercorp.com
The growth and massive expansion of GBLX make it a compelling play for any portfolio. The stock recently took a beating due to two events. The first and most obvious was the severe decline of the Nasdaq market. The second was a $1 billion lawsuit GBLX filed against TYCO. The complaints included pricing issues on goods and services delivered, the use of proprietary information and the violation of a non-compete agreement. Without speculating on the outcome of the lawsuit, we believe it was misread and this - coupled with the severe market decline - has provided some very attractive pricing in the stock. The majority of analysts following the stock also agree that regardless of the outcome it will have no effect on expectations.
The other exciting part of the GBLX plan is the expansion of their fiber optic network. Plans included a total of 101,000 route miles, serving 27 countries and more than 200 major cities. When completed, the GBLX Network will span five continents, addressing 80 percent of the world's international traffic. In a recent report SolomonSmithBarney stated that they believe the expansion will be completed on time and within the projected budget. The network is lit and operational from Tokyo to Berlin and is scheduled to be completed by mid-2001. The network is already under contract to suppliers, including Alcatel, Bestel, Lucent, Nortel and Tyco Submarine Systems.
For the 3 months ended 3/00, revenues totaled $1.12B, up from $176M or an increase of 536%. The company showed a loss of 41c per share for the quarter but the revenue growth is astounding. With the completion of the fiber optic network to occur soon, the strong revenue growth, recent acquisitions (most recently IXnet, leading broadband service provider for multinational financial institutions) and the addition of Gary Cohen from IBM and Joseph Perrone from Arthur Andersen to the senior management team we find GBLX to be a score component of your tech holdings. GBLX formed a 2 week base in the 26-27 area, when the NAS tested its lows, and flagged up to 29-30 on higher volume. Another flag to 34-35 can be expected on the next good NAS rally. There is some resistance in the 40-45 area, going back to last year but, as a leader of the large-cap tech group on the NAS, GBLX can be expected to exceed that level by year end. A 20 point move by year-end - or 67% - is quite a reasonable expectation. The stochastics are strong and with the stock at its 50 day MA, everything is in gear for another upleg. |
