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

To: Theophile who wrote (12045)	6/19/2001 5:30:00 PM
From: trainleaving	Read Replies (1) \| Respond to of 15615

My biggest concern right now is that the MNC's are under the same delusion as some of the brokerages. If the MNC's start to believe the reports from CSFB and others, then the prophecy becomes self-fulfilling. Since GX management does not seem to feel any need to defend their business in press releases, it may indicate that this is NOT the perception of the MNC's at this point. Although, since the telecom meltdown is only a few weeks old (the current wave I'm referring to), maybe more doubt will be thrown into the minds of the MNC's. Maybe we should all start worrying when GX begins defending themselves to the investment community. That may represent that their customers are getting worried too....

To: Theophile who wrote (12045)	6/20/2001 12:07:01 AM
From: DukeCrow	Read Replies (3) \| Respond to of 15615

The movements in the GX bonds are quite interesting. Today, the bonds maturing in 2006 were up about 3 points, while GX's stock was down big again. This is only anecdotal at this point, but if the selloff in GX stock continues it would be a good sign if the bonds continued to stabilize. Another interesting thing to note is that AX's bonds are still trading in the mid-90s, and their YTM is lower than GX's. Even if those bonds are called at the earliest possible date (2005), the YTC is still lower than any of the GX bonds' YTMs or YTCs (in fact, GX's callable bonds have very nice yields if GX is somehow able to retire debt earlier than expected). I find it strange that AX's bonds are holding up better than GX's. Shouldn't the opposite be happening if there really were a funding issue with GX, or is it just that the FUD is being targeted at GX while AX is sliding under the radar? Or is AX really more financially sound than GX? If anyone wants to chime in on thoughts regarding the disparity in near-term performance between GX's and AX's bonds, please feel free. I really can't believe that a rational investor could sell GX bonds so much without a comparative selloff in AX bonds (I guess the same could be said about the common, also). Has anyone taken a hard look at AX's financials as compared to GX's? When is AX projected to reach FCF positive? To anyone who responds, thanks for the info. Ali