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: jopawa who wrote (9490)	12/13/2000 12:01:15 PM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 15615

No question about the price - the $60 was la-la land of telecom/fiber bubble. Still, that doesn't mean W. wants to sell - $38 or not. He may be happy to patiently build the business, and get his return in a longer time-frame - while he didn't sell at the highs of a bubble, why should he sell at the near-bottom of a telecom bear either. Morgan

To: jopawa who wrote (9490)	12/13/2000 12:56:52 PM
From: CRL	Read Replies (2) \| Respond to of 15615

I agree that essentially everything is for sale at some price. I also agree that the price at which Winnick might contemplate a sale is higher than $38. But I do not agree that it is lower than $60. There is no question that the $60 figure, at that time, was affected by the general market euphoria (hysteria). Where I disagree with you is in the implicit assumption that euphoria is never justified. I actually believe it's possible for a stock to trade at the right price for the wrong reason! And while I concede that the reason for the $60 price might have been wrong I am nowhere near as sure that the price itself was actually wrong. (By "wrong" I mean not justified by the likely future benefits to be derived from ownership.) The more recent stock price is based on an even more fundamental misunderstanding of the company, it's products and it potential than might have been the case a year ago. The guilt-by-association with legacy telcos, the radical underestimates of future bandwidth demand, the inaccurate assessment of the competitive environment and the failure to recognize the differentiation of GX's marketing plan, and the failure to give appropriate value credit to the GX investment portfolio have caused this stock to become radically mispriced, I believe. I acknowledge that I did not expect that the price could fall so far. And that I own a lot of GX bought at prices a good deal higher than today's. But I also bought several hundred LEAP contracts during the recent downdraft and I am very pleased to have been given what I believe is an undeserved opportunity to not only recoup my paper losses but to multiply my likely future profits. Who was it that said "The time to buy is when the blood is running in the streets"? Well, in my opinion, as far as GX goes, the blood has been running in the streets over the past couple of months. (Now that I think about it, maybe we should say "when the blood is running in the streets OR when the short interest reaches 50 million shares" >>ggg.) Good luck to all. Chuck