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

To: M. Frank Greiffenstein who wrote (13564)	8/20/2001 5:08:29 PM
From: changedmyname	Respond to of 15615

>>My only point was GX can't have it both ways. GX can't argue that the DoD contract is evidence for GX's viability and strength, then turn around and issue a press statement that loss of the contract is not a big deal.<< I think I addressed the same point back in my novel a few posts back <gg> Jason

To: M. Frank Greiffenstein who wrote (13564)	8/20/2001 5:13:40 PM
From: Zakrosian	Read Replies (1) \| Respond to of 15615

I really do hope GX wins the contract again. But I think there are more issues behind this cancellation then GX and the DoD let on. Cancellation and rebidding is very unusual, it certainly is not done because of some minor procedural matters You may be right on the cancellation and rebidding - I don't know what DOD procurement procedures are - but protests of contract awards are very common. And often political in nature. Just take a look at where the corporate headquarters for GX and the protesting companies are and consider which have the strongest representation in Congress and you might find at least one reason why the contract was successfully contested

To: M. Frank Greiffenstein who wrote (13564)	8/20/2001 7:18:49 PM
From: Bonzo	Read Replies (1) \| Respond to of 15615

Doc, yes I tend to be a glass half full type of investor. That's normally my mindset with stocks I'm long on though. I do acknowledge the enormous decline in shareprice and the one time over valued GX shareprice($60). I also understand the distinction between poor stock performance and (relatively) good operating performance. On that basis I believe GX has great risk/reward potential from its current price and has been unfairly driven to an over sold condition in spite of meeting or exceeding most every milestone and earnings report. Yes guidance has been lowered for Q3 with an upturn projected for Q4 and beyond. I buy management's assessment as it seems most others do not. Liquidity ($3.7B), in spite of some posts to the contrary, is not an issue at this time. Good to see you are still kicking around. As far as your comments regarding the DoD cancellation, I think you may be reading a bit more into this than you should. Contract challenges and appeals are common yet cancellations are not, I"ll grant you that. However, after reading SSB's note (after confirming with both GX and the DoD), I would dismiss CSFB's overly pessimistic and outright inaccurate comments quickly. There is little question in my mind that this is a (DoD)procedural cancellation. Unfortunately, we will have to wait 90 days to find out for certain. GX won the NATO contract without apparent challenge. This contract could ultimately provide greater revenue opportunities than the DoD. The keyword in the SSB note is Confirmed, both with GX AND the DoD. CSFB can not say the same. From SSB: According to "Communications Daily," a daily trade publication, the Department of Defense (DOD) is likely to rebid the contract awarded to GX due to normal challenges to the general accounting office by the losers of that contract. However, contrary to some Wall Street reports, we believe nothing about this rebid has anything to do with GX network capabilities, which is something that we and other Wall Street firms have confirmed with the company. The upshot is that, typically, in government procurement contracts, the consultation with bidders is on a one-by-one basis, where the government agency lays out its specifications and each bidder can then respond to that. In this particular procedure, the DOD had one big meeting where all bidders had questions and all bidders responded at the same time. From what we have gathered, the DOD lawyers determined that meeting ran afoul of normal government practices. Thus, the contract is likely to be terminated and rebid. It is interesting to note that the DOD procurement officer, who awarded the bid in the first place and who will award the contract upon the rebid, is actually fighting his own DOD attorneys over this issue. The upshot is that the DOD contract with GX is likely to be terminated and rebid based on a legal view of the technicalities of the procurement process.