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: Spekulatius who wrote (11173)	5/13/2001 12:24:57 AM
From: DWB	Read Replies (2) \| Respond to of 15615

GX is not immune from severe pricing pressure or firesales of assets. Can you walk me through that? With GX, the plan is pricing pressure... thus increasing demand. They aren't immune, because that's the game. When you say pricing pressure, what new subsea capacity is coming online anytime soon other than their own that will cause them discomfort? You think CZN, Swift, the British embassies, or Exodus are going to try and renegotiate their deal? I don't. As for being immune from firesales, I see GX being a net buyer of those assets, if they so choose. If you think they're going to get tarred with a broad brush when jokers like Teligent or Winstar go belly up, Wall Street just might be able to tell the difference by now... DWB

To: Spekulatius who wrote (11173)	5/13/2001 3:49:20 AM
From: RobertSheldon	Read Replies (2) \| Respond to of 15615

GX is not immune from severe pricing pressure or firesales of assets. Do you understand their business model? They see a >2.5 fold increase in demand for every 50% decrease in rates. So your pricing pressure concerns are unfounded. As I have said enumerable times, cutting rates IS the business model. This only really works in two businesses - transistors and bandwidth. I really do not know what to say . . . perhaps the hordes on the street believe as you do - that GX is just like any other telco. Good grief Charlie Brown! P.S. I see DWB said it much more clearly in post 11175.