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

To: RobertSheldon who wrote (13314)	8/10/2001 1:34:04 PM
From: jopawa	Read Replies (3) \| Respond to of 15615

CSFB said it believes Global Crossing will have a funding gap of about $80 million in 2003, rising to $400 million in 2004. It expects Global Crossing to become free-cash-flow positive in mid-2005. This is a devastating analysis if it plays out this way. Why would the funding gap grow 5x from '03 to '04? Also, something that is never mentioned when it comes to fcf or "fully funded", is that in 7-10 yrs all of the debt actually comes due, God forbid. Not just the interest, but the actual debt. At what compunded rate for the next ten years does GX have to achieve to pull this off?

To: RobertSheldon who wrote (13314)	8/10/2001 7:48:23 PM
From: Captain Jack	Respond to of 15615

A little 'news' article.. By Judith Crosson COLORADO SPRINGS, Colo., Aug 10 (Reuters) - Computer shipments should improve later this year, but telecommunications equipment sales will probably not step up until late 2002, Intel Corp. <INTC.O> Chief Executive Officer Craig Barrett said on Friday. "Computing is more stable. We can expect some improvement in the second half (of 2001). But communications is still in the sick bay. Overinvestment will take a year to wear off," he told the Colorado Technology Summit. Barrett did not speak specifically about the near-term outlook for Intel, the world's largest semiconductor maker. He said traditionally telecom companies have spent about 17 percent of revenues on new equipment, but last year the figure spiked to 35 percent. "It was unprecedented and unsustainable. It will be the end of 2002 before the sector starts to grow again," he said. He said the U.S. economy is probably "more than halfway through" the current economic slump and one bright spot he saw was that other industries such as autos and consumer goods did not appear to be very hard hit. UPBEAT AS EVER If Barrett was nervous about how back-to-school computer sales would fare he wasn't showing it at the conference, attended by 2,200 business and education leaders, and hosted by Colorado Gov. Bill Owens. "The Internet is not slowing down even in the midst of this telecommunications slowdown," Barrett said effusively, as he urged people in the audience to take more interest in education, especially math and science. He decried the fact that U.S. youngsters hold their own in math and science until they are about 10 years old, but fall behind children in other countries as they grow older. He said 500 million people were connected on the Internet and one million new auction links are posted on eBay every day. But he said the $12 million of retail shopping on the Internet every day is still very small, paling in comparison to even Intel, which does $60 million of business every day on the Internet with its customers. He said while a lot of attention remains focused on retail sales on the Internet the real future is in business-to-business sales.