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

To: Sir Francis Drake who wrote (13158)	8/4/2001 4:05:33 PM
From: DWB	Read Replies (2) \| Respond to of 15615

Just curious, but why do you state that they'll have $2 billion after tax from the ILEC sale, when their just released quarterly says over $3 billion after tax? The exact wording was: Sale of incumbent local exchange carrier (ILEC) business to Citizens Communications completed for estimated after tax proceeds in excess of $3 billion, which completes funding of announced business plan and later: Results for Continuing Operations exclude Global Crossing's ILEC business, which the Company sold to Citizens Communications on June 29, 2001 for estimated after-tax proceeds in excess of $3 billion. If the rest of your analysis is based on numbers that are off by more than $1 billion, wouldn't that be a significant oversight? DWB

To: Sir Francis Drake who wrote (13158)	8/5/2001 12:02:00 AM
From: MDGO	Respond to of 15615

Re-M.Dillabough post#13080 presents a lengthy analysis by J. Grubman. GX w/ lower guidance is funded thru 2H-02. Positives incl. Potential business from customers whose suppliers are out of business. Growing capacity and therefore additional contracts from current customers. New business (in a field of diminishing suppliers) etc.,etc. Critical of course is how fast GX can generate additional business and revenues to cover operating costs, debt and capex. Where do you take exception to his numbers?

To: Sir Francis Drake who wrote (13158)	8/5/2001 12:53:41 AM
From: Ally	Read Replies (1) \| Respond to of 15615

Morgan, such a long posting, but certainly has good points for pondering. But first, why Sir Francis Drake? I see you with a long white beard from medieval England. Let me add more points for us here to ponder on. I think GX longs are confused and disheartened at what has happened to the stock price and they long for reasons and answers. Why has the stock dropped to such a pathetic, lowly, unloved pizza with no toppings level? What has caused such dissatisfaction liken to an itch that we cannot scratch? Where is the weakest link? GX is still the world's first integrated global IP-based fiber optic network. It has completed building the global network, it is selling and will be selling capacities worth billions of dollars to the world's largest carriers, it has gone up the value chain by selling directly to enterprise customers, and yet the stock has gone taken a beating. True investors want to know why, why, why? Is there something truly wrong with the company that long term investors are not aware of? Does the chart know something that the best analysts cannot detect based on the information now available? Do insiders have a different set of information than outsiders? Are we being paranoid and ambulance chasers? In short, why $60 when the company was a fledgling and $6 when it is a grown bird flying with strong wings? OK, so we may have worn rose-colored glasses at the beginning figuring that GX is the best thing since sliced bread with its global IP network. We didn't anticipate excess capacity and falling prices. Now, we worry about what if it can't sell enough to pay off interest on the borrowed money. We worry that Q2 may be a trend and not an occasion. We worry whether it can continue to steal enterprise customers away from WCOM, T, Q and others. We worry, worry, worry. Is this the weakest link, we worry too much, and others worry with us? Is it the unfounded worries causing the stock dilemma, or are there real justifications behind the worries. Curious minds want to know.

To: Sir Francis Drake who wrote (13158)	8/5/2001 5:08:28 AM
From: Theophile	Respond to of 15615

Yes, Winnick has the obligation to protect the company by having sufficient cash to operate, and to protect his own wealth by protecting the share price from dilution. He is no longer a billionaire of GX and I bet he is unhappy about this, obviously several Billion more unhappy than I will ever be about this !! Ally is correct in questioning the main assumptions, i.e. will this current economic trend continue, and//or is Q2 decline temporary, and how temporary. Simple. It is a race against the economy. I know Winnick proposed such a scenario during the startup days, and therefore I figure he has allowed for it as best as possible. The tides of the economy are slow to shift, and we are just now on the cusp of what would ordinarily be considered the very first opportunity to observe any results from the FED's rate cuts. I would suspect this qrtr will be agonizingly slow, and if I were to see Winnick take more financing at this juncture I would then be more skeptical of his character. If more dilution is required at some point in the future, I hope it is self-evident that it is indeed required. Martin

To: Sir Francis Drake who wrote (13158)	8/6/2001 3:36:47 PM
From: Allen Furlan	Respond to of 15615

Morgan, thanks for your very thoughtful analysis on gx. You may find that looking at mtp may be useful. They currently have a restructuring proxy which has some very interesting information. Bottom line is that sale of energy business will provide about 1.3 billion in pre tax proceeds to invest in touchamerica. From their annual report "By yearend 2001, TOUCHAMERICA expects to have $1.6 billion in assets , no debt and approximately $350 million in cash to grow the company" Their plans are to add 8,000 route miles to their current 18,000 route miles. Obviously their route miles (out where the buffalo roam)are substantially less valuable then the gx international routes. However my assessment is that there will be a major growth opportunity for astute companies who offer technologically superior network access to their customers, wherever those companies may be. So why not invest in a company which has the greatest probability of surviving on a financial basis?