Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: changedmyname who wrote (13425)	8/17/2001 11:01:22 AM
From: Rob C.	Respond to of 15615

*DJ Global Crossing Down 16%; Analyst Notes Cancelled Pact 17 Aug 10:44 (MORE) DOW JONES NEWS 08-17-01 10:44 AM

To: changedmyname who wrote (13425)	8/17/2001 11:03:15 AM
From: MDGO	Read Replies (1) \| Respond to of 15615

I wonder whether the DOD decision was influenced by the army of lawyers and lobbyists and influence in Congress by the Telephone monopolies and others?? Same as they managed the demise of the CLECS, DSL providers and other potential competitors.

To: changedmyname who wrote (13425)	8/17/2001 11:13:44 AM
From: changedmyname	Read Replies (2) \| Respond to of 15615

New twist to the story: -- AB: GX: DoD Contract Award Delayed Due to Protests - GX Confirmed As BE-Strong B -- 10:50am EDT 17-Aug-01 Deutsche Banc Alex. Brown Inc. (R. Chopra/O. Leary) GX Chopra, Rohit N. 212-469-7808 8/17/2001 Leary, Owen J 212-469-7726 Deutsche Banc Alex. Brown Inc. ------------------------------------------------------------------------------ - GLOBAL CROSSING LTD. (GX) "STRONG BUY" DoD Contract Award Delayed Due to Protests - GX Confirmed As BEST TECHNICAL SOLUTION ------------------------------------------------------------------------------ - Date: 08/16/2001 EPS: 2000A 2001E 2002E Price: 5.26 1Q (0.45) (0.69) NE 52-Wk Range: 38 - 5 2Q (0.61) (0.70)A NE Ann Dividend:0.0 3Q (0.65) (0.73) NE Ann Div Yld: 0.00% 4Q (0.70) (0.74) NE Mkt Cap (mm):4,844 FY(Dec.) (2.41) (2.86) (2.82) 3-Yr Growth: 20% FY P/EPS NM NM NM CY EPS NENE NE NE Est. Changed No CY P/EPS NM NM NM ------------------------------------------------------------------------------ - Industry: TELECOMMUNICATIONS SERVICES - WIRELINE Shares Outstanding(Mil.): 921.0 Return On Equity (2000) : 0.0% ------------------------------------------------------------------------------ - HIGHLIGHTS: * We spoke directly to the Defense Information Technology Contracting Organization Office of Public Affairs, the organization who awarded the contract, and they have indicated to us that a recent contract award to Global Crossing has been cancelled for the "convenience of the government." * A competitor has indicated that GX lost the Contract due to technical ability, -WE HAVE CONFIRMED WITH THE DOD THAT THIS IS WHOLLY UNTRUE, lacks any merit and is not based on fact or reality. We spoke directly to sources at DREN (Defense Research and Engineering Network) and the HPCMP (High Performance Computing Modernization Program), and they indicated to us that the contract was cancelled due to procedural issues. They also indicated that Global Crossing's solution was "by far the best technical solution" in the original bidding process - and that's why they won originally. They expect GX to win again. * Officially, the protests are not against GX, but against the bidding process, and although we cannot verify who the protesters were, we think it was most likely AT&T (original contractor), Qwest, WorldCom, and Sprint. The standard cast of characters that are fighting the encroachment of GX on their customers. The protests, in our opinion, are the result of incumbents losing share to GX. * The protests are officially lodged to the GAO (Government Accounting Office), which now has 90 days to respond to the protesters claims. After 90 days the GAO will respond to protesters who then have 10 days to respond, but that is the end of the process. Thus, we will most likely know the result of the second bidding process in approximately 100 days. Given that GX was the best technical solution in round one, confirmed by DREN, we remain confident they will win again. * Recall that the original contract was for $137Mn over the next three years with the potential to be as much as $400Mn. Thus, in the worst case scenario, if GX were to lose the contract the second time around, it would only be losing approximately $60Mn/year in revenue. This is about 1% of GX's total revenues. * We are reiterating our Strong Buy and YE02 price target of $20.00 DETAILS: Information herein is believed to be reliable and has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Opinions, estimates, and projections constitute our judgement and are subject to change without notice. This publication is provided to you for information purposes only and is not intended as an offer or solicitation for the sale of any financial instrument. Deutsche Banc Alex. Brown Inc. and its affiliates worldwide, may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as advisor or lender to such issuer. Transactions should be executed through a Deutsche Bank entity in the client's home jurisdiction unless otherwise permitted by law. Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD. Copyright 2001 Deutsche Banc Alex. Brown Inc. Additional Information Available Upon Request Deutsche Banc Alex. Brown Inc. maintains a net primary market in the common stock of Global Crossing Ltd.. Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or comanaged a public offering of Global Crossing Ltd.. The following stock(s) is (are) optionable: Global Crossing Ltd.. There is a (are) convertible issue(s) outstanding on Global Crossing Ltd.. An (The) author(s) of this comment has (have) a long/short position(s) in the common shares of Global Crossing Ltd. First Call Corporation, a Thomson Financial company. All rights reserved. 888.558.2500 Symbols: GB;NWFX GB;5413600 US;GX 17-Aug-2001 14:51:27 GMT Source FC - First Call Research Notes Categories: BKR/AB FCIN/TELECM FCSU/SEO FCSU/COM FCSU/OTH FCSU/PRC GEO/US GEO/NME FCSU/MMN