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

To: DukeCrow who wrote (13344)	8/13/2001 8:34:32 AM
From: KJ. Moy	Read Replies (1) \| Respond to of 15615

<<I think you're missing the point which is that those revenues were low quality not simply because they are swaps but also because they are very hard to forecast into the future.>> Not only 'swaps' are hard to forecast by outsiders such as CSFB, other revenue streams are also as hard to forecast if not harder. Have CSFB talked to some of the recent contract wins such as MSFT, DoD to understand more about how much revenues are coming and when? Have CSFB talked to these local Telcos who did the 'swaps' with GX on the terms of these deals? Have CSFB surveyed the vicinity of the co-locations within a 50 to 100 miles radius, just to see if there are opportunities for good commercial customers ready to join? They chose to disagree with GX's own forecast and came up with their own. CSFB's guess is no better than DBAB's. It all comes down to a matter of opinion. I did not miss their point. CSFB's entire report is gloom and doom. The sky is falling type. << Recurring data services revenues is the holy grail that GX is going after. The fact that those "high quality" revenues came in below plan, along with the greater than expected "low quality" revenues is what is most troubling to CSFB. >> GX's own forecast of your so-called holy grail recurring data services is now at 50-60% instead of 80% originally forecasted. Given the economic conditions, I'll take that any day. The real key is will GX have enough money to last until profitability. I think they will. CSFB's 'MODEL' says GX will need 80m by 2003. If they can be that accurate, they ought to start a psychic online business, rather than sitting in the ivory tower and making these numbers up.