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

To: RobertSheldon who wrote (11167)	5/12/2001 5:21:06 PM
From: TechMkt	Respond to of 15615

BT is running into credit trouble. I think once the ILEC deal closes, people will feel more confident that GX will be able to make ALL of it's interest payments. I hope they don't blow all the money on expansion. That would be a BAD MISTAKE. Fez _________________________________ May 11, 2001 Moody's Downgrade Could Add Millions to BT's Debt Interest LONDON -- British Telecommunications PLC on Friday said it is "extremely disappointed" that Moody's Investors Service Inc. downgraded BT's debt rating to Baa1 from A-2, a move that could add an extra 30 million pounds ($42.7 million or 48.4 million euros) a year to its debt-interest bill. The ratings downgrade by Moody's followed BT's unveiling Thursday of a restructuring plan in an effort to tackle its mounting debt -- roughly 27.9 billion pounds at the end of March -- and a downgrade by Standard & Poor's Ratings Group. S&P cut its long-term corporate credit and senior unsecured debt ratings on BT to single-A-minus from single-A, and lowered its short-term ratings on BT to A-2 from A-1. BT Chairman Sir Christopher Bland expressed relief Thursday that the ratings cut from S&P wasn't harsher, as a bigger cut in the rating would have required BT to pay higher interest on some of its bonds. Nevertheless, the downgrade by Moody's is expected to result in a rise in interest payments because of covenants associated with BT bonds. Regarding the industry in general, Moody's still sees the appropriate ratings for integrated incumbent European telecommunications operators in the single-A category, according to Carlos Winzer, a senior vice president at the company. The key word in Moody's statement is "integrated." BT lost its A-2 rating because its restructuring plan includes the possible spinoff to its shareholders its mobile-phone business, BT Wireless.

To: RobertSheldon who wrote (11167)	5/12/2001 7:32:29 PM
From: charger	Read Replies (2) \| Respond to of 15615

"Largely exempt from such misfortune" may be true, however, when GX competitors throw in the towel and default, it will put the fear of God in many a telecom investor and bondholder. That's my personal speculation...the next fear induced bottom should be the one to buy, as the survivors will rise from the ashes and prosper. Remember, there is still a tremendous amount of debt out there, even among the most established players, such a T, BT and DT. When things get bad, the bids will dry up, and nobody will want to touch anything with a heavy debt load. Looking back in hindsight, I never would have thought GX could have breached $20, much less $10, so nothing would surprise me now. I still don't understand that day when GX went sub $9 on heavy volume...maybe some fund was forced to liquidate? I maintain that the bottom will be in when a few biggies blow it, such as LU. That's what makes a market, right?

To: RobertSheldon who wrote (11167)	5/12/2001 8:29:53 PM
From: Spekulatius	Read Replies (2) \| Respond to of 15615

>> Trying to time the bottom is dangerous. << I think that news from the telecom industry will be mostly negative and GX may not be exempt from that. GX is not immune from severe pricing pressure or firesales of assets. GX discounted cash flow value is highly dependent on future growth rates and margins, both could easily come under pressure, IMHO. I do think that GX is the best of the new telecom carriers, even though CWP with its global reach and boatloads of cash may be worth an investment as well. In a market like that, i do think that not trying to time the bottom is treacherous.