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

To: TimKP who wrote (10061)	2/28/2001 3:12:08 AM
From: RobertSheldon	Read Replies (2) \| Respond to of 15615

When does the tide turn and GX really become profitable Well, there are two answers here. On the one hand depreciation charges are so large that they will mask GX’s profitability for several years. On the other hand I suspect that GX will begin to pay a dividend sometime next year. Thus I am more focused on cash flow and how they use it. They could pay off the debt, pay a dividend, or reinvest it some other way in the business as long as the returns were such that I could not find a similar opportunity on my own. I hope that it occurs in that order. The straight answer to your question is that I should have some hard numbers for the thread soon, but please be patient. Our attention has been taken away from GX (we are having a hard time finding problems with the company :-)) and placed on companies like ADBE, CSGS, SUNW and a few others (you folks may recall that we already started positions in CREE and PWER) due to the markets recent cascading slide. These newer ideas are fundamentally cheap, or real close to cheap, recession or not. So our limited asset (time) has been devoted more to potential investments than on companies we are certain are clean and no-brainers for the long haul. Take care.