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

To: changedmyname who wrote (11826)	6/16/2001 4:01:39 AM
From: DukeCrow	Respond to of 15615

<<So far, no one has been able to come up with a report that was released today that suggests Lehman said there is a funding gap.>> There was a Lehman report out Friday entitled, "Long-Term Hurdles Likely to Take Center Stage." They basically said that they may have jumped the gun in calling for a near-term pop in the stock. Also, they brought up the IRU concerns and how it may affect 2002 guidance. However, they did not lower their target (still $28) and did not change their opinion (still a 2 - BUY). They also stated that even if their projected figures (already below company guidance) got haricut by 20% it would still lead to a present fair value of $17. The Lehman report finishes: For all of these reasons, we think there is considerably more value in the equity than is reflected in the current stock price. We will continue to monitor the IRU business and the funding outlook’s sensitivity to IRU sales. We acknowledge that there are downside scenarios that show GX as not fully funded, but these do not consider GX’s stakes in EXDS and AGCX, nor do they consider that $7.5B in combined capex (01 and 02) probably has a significant amount of potential for scale-back, given that GX’s network is nearly fully complete.