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

To: SecularBull who wrote (9067)	11/15/2000 4:06:59 PM
From: DWB	Read Replies (2) \| Respond to of 15615

Anybody looking at the LEAPS for GX around here? If the story is better understood by this time next year, the 1/02's could be very profitable. Or if it takes a while longer (cash breakeven in 03?) the 1/03's might be better. Regardless, they seem to be going for chickenfeed right now... DWB

To: SecularBull who wrote (9067)	11/15/2000 4:15:41 PM
From: Sir Francis Drake	Read Replies (2) \| Respond to of 15615

LoF - its the other way around. Telecoms are "taking it in the pants" BECAUSE the street is NOT providing capital. No "uncertaintly" here. And they are not providing capital because they are afraid this is a commodity business - and there is no pricing power with a commodity business, and hence very thin profits. Re: why JDSU, CIEN etc. don't seem to suffer quite as badly. Think of it this way: the fiber CONSUMERS (telcos) are like drug addicts - they have no choice, but keep buying the drug (fiber), while JDSU etc. are the drug pushers (suppliers). Guess who grows rich and who poor? Would you rather invest in the drug addict or the pusher? Of course this whole thing is out of whack to some degree, no doubt. The telcos have been overly punished, and the hardware guys have been overly coddled. There most likely will be some re-balancing, or at least telcos getting a bit of a dcb. Morgan