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

To: RobertSheldon who wrote (13077)	8/3/2001 8:56:27 AM
From: TechMkt	Read Replies (5) \| Respond to of 15615

All, After listening to yesterday’s CC and examining the Q2 results, I have substantially reduced my holdings in GX. As most of you know, I have been long for some time. I believe GX has a good business plan and will someday dominate the industry. Unfortunately, there is too much negative sentiment surrounding this company right now for any meaningful investment gain to be made. Specific notes: - I have attended the last two shareholder meeting and the analysts meeting in March. I personally asked Winnick about business conditions at the last shareholders meeting. I talk to GX IR fairly regularly. I read all news surrounding GX from a variety of sources. After all this, it was appalling to see the company reduce guidance in the Q2 report. I’ve said it before - This company still does not communicate well. - Most successful companies I have invested in value shareholders. They let them, and analysts, know when business is good or bad. GX is too secretive. They have never reassured investors, and I think we now know why. I don’t think GX cares about shareholders. Now that they have all the money they need, shareholders are viewed as a thorn in their side. - GX has lost the respect of the street. The most successful company’s never do this. GX ignores investors and analysts. Once that respect is lost, it is very hard to get back. The fact that the NASDAQ is not at it’s lows, but that GX is at a 52 week low leads me to question whether GX will recover with the economy. In short, I believe GX still has a good plan and will prosper one day. However, in light of their history, I don’t think investors will share in good fortune. Also, it will take some time before the huge wave of negativity can be lifted from this company. There may be brief pockets of strength, but I think many people are leery of putting a lot of money into GX. I know I am. I sold some of my holdings at 8 and thought I was being stupid. Now I see it as a smart move. I expect some of you to counter my points (Robert, Ally,…) and respect your opinions. I wish you only the best in your investing. I will still watch the company, but less actively than before. Best of luck to all of you. Fez

To: RobertSheldon who wrote (13077)	8/3/2001 10:07:29 AM
From: CRL	Read Replies (1) \| Respond to of 15615

Robert, GX has now been beaten down as much as the optical equipment stocks. I've been considering the timing of increasing my position in the opticals, but with GX at this level I have bought more of it. In considering GX versus the opticals, though, I had a question that I hoped you might comment on: Considering a stock such as AVNX, for instance, which shows the promise of being able to multiply by many times the data-carrying capacity of a fiber, which side of the equipment-sale transaction stands to benefit more? Let's say AVNX makes a new piece of gear that can double the cpacity of a GX fiber to carry data. Presumably the purchase of that equipment is a one time revenue item for AVNX. But for GX the opportunity to dramatically increase it's revenue generation is an ongoing item. So, if that's true the seller gets a "spike" in it's revenue but the buyer's revenue potential is raised to a higher plateau on an ongoing basis. So AVNX, for example, has to keep new generations of equipment coming to market in order to maintain a given sales level. But, disregarding pricing issues for this purpose, it would seem that the network owner has a much greater opportunity to profit than the equipment provider. I might certainly be missing something here, but why should I buy the opticals at current prices when I can buy GX at fire-sale? Your thoughts on the comparision would be much appreciated. Chuck