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

To: charger who wrote (8860)	11/6/2000 4:29:16 PM
From: jopawa	Respond to of 15615

Monday November 6 4:13 PM ET Global Crossing Sees No Need for 'Giant Acquisition' NEW YORK (Reuters) - Global Crossing Ltd. (NYSE:GX - news), a high-speed communications network service provider, sees no need to sell itself or pursue major acquisitions since it already has the geographic reach and services to thrive on its own, Global Crossing Chairman Gary Winnick said on Monday. ``Don't expect us to come up with a giant acquisition or sell ourselves,'' Winnick said in a telephone interview. ``I think it would be inconsistent and arrogant to say we have everything we want...but we have a lot more than anyone else in this space.'' Hamilton, Bermuda-based Global Crossing is building a high-speed fiber optic communications network that will serve 27 countries and more than 200 major cities. The company, which is fully funded through 2002, has enough money to complete the construction of its network. In its first three-and-a-half years, Global Crossing has focused on building its network and expanding through acquisitions, including its purchases of Frontier Corp., Global Marine Systems and Racal Telecom. In the next phase of its development, Global Crossing will focus on adding products and services and landing major customers such as government agencies and wholesalers, and Internet service providers. ``The phase the company is about to go in is operating and maximizing this network...and putting more advanced services on top of network,'' Winnick said. Shares of Global Crossing, which moved to the New York Stock Exchange on Monday, fell 5/8 to $20-13/16, a level unseen since Jan. 1999. The stock has suffered under a broad sell off in telecommunications stocks, as well as investor fears that recent management changes may be a sign of deeper instability in the company, analysts said. Last month Global Crossing named Vice Chairman Thomas Casey as its fourth chief executive in its brief history after Leo Hindery stepped aside after just seven months in the job. Casey, however, has said he plans to stay for the long-term. Global Crossing said it has not been hurt by the same falling prices and increased competition in the telephone and data markets that have plagued industry leaders such as AT&T Corp. (NYSE:T - news), WorldCom Inc. (NasdaqNM:WCOM - news) and Sprint Corp. (NYSE:FON - news). Global Crossing is the fifth largest provider of long-distance telephone service in the United States, but it focuses mostly on transmitting data services over its high-speed land-based and undersea networks. ``We have very little in the voice business....we've built something very different than what has been built by other legacy companies,'' Winnick said. The company has made several recent moves to cut costs and remain lean despite its acquisitions. In September, Global Crossing agreed to sell its GlobalCenter Web hosting unit to Exodus Communications Inc. (NasdaqNM:EXDS - news) for $6.5 billion. That deal gives Global Crossing an 18 percent stake in Exodus, plus a marketing agreement that lets it offer Web hosting services to its own customers without the high cost of building the Web hosting unit. Global Crossing also sold its local telephone business to Citizens Communications Co. (NYSE:CZN - news) for $3.65 billion. With these deals, Global Crossing shed costly assets and cut its capital spending plans by about $2.5 billion. It now expects its capital spending to be about $3 billion to $4 billion next year, Winnick said. Global Crossing last month said it was ``confident'' the company would be able to beat its third-quarter forecast of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between $435 million and $440 million and of about $1.725 billion in adjusted EBITDA for the year. Wall Street analysts on average expect Global Crossing to report a loss of 78 cents per share in the third quarter, compared with a loss of 7 cents a share a year ago, according to research firm First Call/Thomson Financial. The company will report its third quarter results on Nov. 13. It will provide additional financial guidance in January when it hosts its analysts' meeting.

To: charger who wrote (8860)	11/6/2000 4:44:04 PM
From: rhkohnen	Read Replies (2) \| Respond to of 15615

It is interesting that we were just musing about the quick sale of AGCX and GCTR. Based on your theory of the market discounting telecoms, those sales are making more sense. GX will either have enough funds to weather this period or maybe a war chest to pick up some of these companies. Another thing I have been thinking about for sometime is the coming of a credit crunch in 1Q01. Just something in the back of my head right now. If true, it will affect more than just telecoms. From some other readings, there are concerns of GX's debt for next year. IF they are projecting large expenditures for next year then look for the stock to remain at or below this level. Behavior of the stock price with this earning report is a telltale for where GX is going over the next two quarters. If the stock price gets back over thirty from this earnings report then the market still views GX as a growth company which commands some premium, IMO. Under this case I would then expect it to appreciate into the y/e and 1Q01 earning reports. Best Regards Bob