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

To: DukeCrow who wrote (12734)	7/23/2001 9:04:08 AM
From: TechMkt	Respond to of 15615

08:14 ET Qwest Comms (Q) 30.00: Banc of America Securities comments on Friday's late news that Citizens Comms (CZN) was terminating an agreement to acquire 540,000 access lines for $1.6 bln; B of A says that this is not a favorable outcome for Q as it will not get the cash and it might indicate that the value of access lines is falling.

To: DukeCrow who wrote (12734)	7/23/2001 9:37:12 AM
From: BWAC	Read Replies (1) \| Respond to of 15615

<I would argue that a responsible company following a rational business plan wouldn't need to rely on its stock price to keep the business running smoothly. Any damage done to the company isn't real but imagined.> What if part of running its business smoothly requires accessing the capital markets in its early formative years?

To: DukeCrow who wrote (12734)	7/23/2001 10:46:19 AM
From: CF Rebel	Read Replies (3) \| Respond to of 15615

Duke, "I would argue that a responsible company following a rational business plan wouldn't need to rely on its stock price to keep the business running smoothly. Any damage done to the company isn't real but imagined." The fact that GX has executed in such a negative environment is proof that it is a responsible company. But, if you think that legitimate access to the capital markets for early-stage companies is imagined, you're dreaming. You seem to believe in the "efficient-market" theory - whatever the market thinks is right and has no costs. On the contrary, the markets are generally inefficient and shorting, with it's negative effects, makes them only more so. You won't find an investment banker who'll say stock price doesn't matter when raising capital. And, it matters chiefly to shareholders who face greater dilution than would otherwise be necessary. This Labor Day weekend will mark the second anniversary of the Barron's "Bandwidth Glut" issue which was the first major business journalism round fired at GX. The issue of there being a bandwidth glut was extensively discussed and doubted on this and other boards long before that and since. The most recent reports continue to debunk the glut talk. That isn't to say there isn't a glut of bad business models in the emerging telecom sector. But, the fact is that this company has met or exceeded all guidance before and in the two years since the Barron's trash piece. The problem with the Street and it's journalists is it's irrationality in the face of facts. Due skepticism is one thing, but the Religion of Bandwidth Glut has continued to hold sway. This is not "imagined." CF Rebel