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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: DanWebzster who wrote (2896)	6/19/2001 11:52:25 PM
From: James Clarke	Read Replies (2) \| Respond to of 4691

<<Please share your thoughts about when GX becomes a deep, deep value.>> I'll share them now. One of the most important tenets of Buffett investing is recognizing the limits of your circle of competence. This is well outside of mine. But I suspect you're looking in the right place for value - selling has become a panic. If there is someone on this thread who can sort this telecom sector out, I hope they'll post their thoughts. Mine would be worse than worthless.

To: DanWebzster who wrote (2896)	6/20/2001 9:32:27 PM
From: Bob Rudd	Respond to of 4691

GX Quick, back of the envelope stuff: EV/EBITDA 40x is high, [15x might be reasonable for a value guy] and I suspect forward EBITDA to be lower...probably a lot lower. Consensus 01 -3.14. 02 -3.21 doesn't look like anyone sees sunny skies ahead, and analysts really look for them. In May insiders sold or proposed sale of 20+ million shares, so they're not optimistic either. I doubt anyone can say WHEN GX becomes a deep value, but it sure doesn't look anywhere near there now.