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

To: DWB who wrote (13060)	8/2/2001 3:45:14 PM
From: Softechie	Read Replies (4) \| Respond to of 15615

DWB You have very good point with with NATO and DOD! They won't sign up unless they know for sure the company will be around to serve for the next 10 years.

To: DWB who wrote (13060)	8/2/2001 3:58:23 PM
From: changedmyname	Read Replies (2) \| Respond to of 15615

DWB, I would argue that your scenario is "best-case" while mine was probably worst-case. True that TSIX and LVLT certainly don't have the network or service capability that GX has, but that doesn't mean a thing when it comes to how the company's bottom line comes in. GX may have the best network and be able to undercut anyone in price, but so what? If the revenues aren't there, then they are screwed. A lot of what GX has said now hinges on the economy turning around. They don't have a crystal ball (neither do I for that matter <g>), and are just "assuming" things will resume back to their normal pace. Today they were commenting that things will probably turn around by the end of the year. What if they don't? Can GX survive such a depressed period should it last over a year rather than the 6 months they are thinking? Should the economies slump further (remember GX is on a global basis, so not just the US), then you're looking at further revenue cuts. We know that further revenue cuts leads to further needs of cash. As I said earlier, I don't doubt that they would be able to get cash, but at what cost to shareholders? As far as the recent contracts w/ the DOD and NATO, I certainly was pleased with those. And I'm sure that GX gave them the whole speech about them being fully funded, blah blah blah. But how comforting are those agreements when you read that LVLT signs up MSFT and Q and whatever else big companies they have enlisted, when we know very well that they will go out of business before GX? So IMO GX is hinging it's future on a recovery in the economy.... no doubt it will, but will it happen sooner or later? Jason