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

To: gruetz who wrote (10644)	4/15/2001 3:25:47 PM
From: Bill Fischofer	Read Replies (1) \| Respond to of 15615

Re: Also-rans I think most will hang on for another 12-18 months, perhaps longer. The longer the better from GX's perspective. Once GX turns cashflow positive I think folks are going to be amazed at the amount of cash the company is capable of generating. If the stragglers manage to limp along for another two years GX should be in a very strong position to bid on the choice morsels. Thanks to Metcalf's law, the value of a network is proportional to the square of its size. Having the first and largest truly global network means that additional network assets will gain proportionately more when part of GX's global network than as part of a regional network. I believe this is why GX management was talking about "game over" in another year during their analyst day presentations. Once the network effects fully kick in it will be virtually impossible for anyone else to catch GX.

To: gruetz who wrote (10644)	4/15/2001 5:03:04 PM
From: akmike	Respond to of 15615

I agree with Bill's comments regarding GX's early mover advantage and would add that the GX subsea capacity should be the trump card in a world of more and more bandwidth being consumed. The build-out of the network to this stage from a standing start just a few years ago is a testament to the capital raising ability of Winnick et al and the operational and constructing ability have been equally formidable. These guys moved into a world where monolithic telecommunication juggernauts and governments alike had become comfortable taking years to get a few months work done. I am sure that GX has not executed as flawlessly as it appears, but the results have been stunning in terms of how quickly they have moved on a relative basis. The backbone is now there to add traffic on an equally stunning basis in terms of revenue growth. Is GX worth much more than its current valuation to a vertically focused incumbent? IMO sure, but will they pay the value while their existing customers are demanding more from them and their shareholders are grousing about returns? **