Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jimbopost who wrote (9177)	11/20/2000 8:50:41 PM
From: Theophile	Read Replies (2) \| Respond to of 15615

I see LVLT is getting the heat for its time to profitability and financial position. I understand it is fully funded, so I am not quite certain what the problem is all about, except that big money waits till the last moment for a company to go cash positive it seems, and until then share price seems to be eternally vulnerable. Thanks for the correction of "who bought what", it was Viatel that took on that extra fiber pair. You see, to me this indicates the differences in revenue-expectations for LVLT and GBLX on the N.Atlantic route. GBLX needs more capacity, LVLT needed more cash, was less optimistic for sales of its capacity...eh? Subsea is not LVLT niche, however, so I do not want to get into the valuation question. I am only interested in the niche, really, the fiber is simply what holds this niche in place if you get my drift. I saw cnet has an article on telcom eqpt sales down 7%, however metro net sales of eqpt are up 37%....next niche? What about DSL or Wireless or Laser? See, there is the difficulty, competing technologies. Subsea no competing technology (yet), simply the question of funding, on-target buildout, capacity sales to high end customers, and getting there first. Will huge cables eg TYCM ever be lit within payback period? Will tech going forward be able to take DWDM and turn GX cables into a ten fold increase for capacity? The game then becomes one of customers not so much bandwidth, because the costs of holding a route active do indeed bottom out at some point and can get no lower without going cash negative. Thus, having the customers will be key to the future, IMO, and getting the customers is the priority of getting there first. OK, long enough post here. Horrible price action today GX, but I really am expecting nothing any different until after we elect a president here in the USA...... Martin Thomas