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

To: Spekulatius who wrote (11181)	5/13/2001 3:58:39 PM
From: Theophile	Read Replies (1) \| Respond to of 15615

The link to BCE was enlightening and heartening. Indeed, BCE sounds like a relative of ATT or BT. They say they would rather buy capacity than build it. To me this suggest business is strong for carriers, including GX. Does anybody here believe any of these semi-competitive companies will sell bandwidth for less than it costs to provide it? They all have debt, so I am left without conviction about interpreting the position of BCE to be something which applies to a new-gen provider. BCE is obviously not a new-gen company. One could similarly equate ATT's problems to be GX's problems. Ravi Whoever suggested something similar with the telecom debt argument presented in TSC. Not distinguishing amongst and differentiating between the various revenue streams is ludicrous, and I read no further once I believe that issue is not being given proper value. I see the popular newsies trying reap whatever volatility they can from a placid market. I no longer pay attention except to the fundamentals underlying this scene. Anyone believing the world is ready to drop off the edge of a cliff needs to look around and see if the roadways are going to evaporate, and the infrastructure turn to dust at midnight. Has a slowdown and will a slowdown, affect(ed) GX more than the rest? Is money in the form of investment money, coming back into the markets? Are there inflows into high yield bond markets? Do we see the IPO market coming back to life? Spectres of doom, unemployment and recession are great to splash the headlines, but what do we see the MONEY doing? I don't take my eye off the ball. Thanks for the article on BCE, I believe you are correct in pointing out where the pricing pressure really is....the big kids have to buy, and the small kids are selling to them. MartinT PS: I just saw this on SI, a good thought provoker. from: siliconinvestor.com "Leading the calendar in size this week is Instinet Group Inc., the agency brokerage unit of global news and information provider Reuters Group Plc . Instinet, which was founded in 1969, runs an electronic communications network (ECN) -- an alternative trading system that matches buyers with sellers electronically -- that accounted for 15 percent of the Nasdaq stock market's volume in the first quarter. Instinet, which was acquired by Reuters in 1987, aims to raise around $400 million, in the first stock offering by an ECN. The company's IPO performance and future earnings are intricately linked to the stock market, experts said. "If you believe that trading volumes are going to pick up -- and historically they've grown faster than the equity market rise -- then this company stands to gain," Smith said. <<<>>>> Well, I guess they think they would rather have less IPO money and get it early, rather than wait 6 months and go public in a better market, no? Now, do these guys know what they are doing? I think even if they are less skilled than I, they still have access to better information than do I, so if I, with my limited info, can believe the market looks good, and they, with their superior info believe the market is good enough to IPO into, and still show decent growth in this placid market, well, maybe they are simply hard up for cash? You know, Reuters? Yeah, so hard up they will give up a few million for a piece of the action today rather than await a better day????? Keeping my eye on the ball, I would say "follow the money, NOT the enuendo...hey, more volatility is JUST what this new IPO will need to make a buck....right? HEE HAAWWW. <g> mt

To: Spekulatius who wrote (11181)	5/13/2001 9:47:19 PM
From: John Biddle	Read Replies (2) \| Respond to of 15615

Spek, with all due respect, I believe you have misinterpreted the info in the story you posted. Companies like BCE are now saying "We are buying capacity on favorable economic terms," Monty said in an interview Wednesday. "It marks not only a true cost savings -- it also gives us more scalability, so we can match capacity with demand." Not because the cost of the bandwidth itself is coming down quickly, but because the cost of building their own network is going up, what with the increasing unavailability of credit. As nets get more difficult to build, or even finish, and the pressure to buy bandwidth goes up, this actually provides some resistance to the natural and expected drop in prices on which GX has built the business. Though the article did, in support of your point, say The troubling part about BCE's move is that it may signal a surplus of network capacity brought online by numerous long-haul bandwidth players. These megacarriers like Level 3 (LVLT:Nasdaq - news), 360Networks (TSIX:Nasdaq - news) and Williams Communications (WCG:NYSE - news) are now eagerly seeking ways to sell services, which will in turn help repay debt taken on to defray construction costs. They followed it up with "What you're seeing here is a fundamental shift in telecom, to a wholesale vs. retail structure," says CIBC World Markets analyst Steve Kamman. "Some players will focus on providing services, while others will focus on operating the assets that carry those services." In the past, the likes of AT&T (T:NYSE - news) have attempted to be all things to all telecom customers, but to little effect. GX has done a superb job at getting their network built early and in all the right places. They will increasingly benefit from the rising pressure on others to buy rather than consume. While others with much less desireable assets and networks that still need funding are attempting to stave off death with price cuts, customers are increasingly going to the provider with the right products, price and stability.