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Technology Stocks : GX Investors Thread -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (214)8/30/2001 6:55:38 AM
From: KJ. Moy  Read Replies (1) | Respond to of 586
 
<<Global Crossing is I suppose like that too.>>

I believe most investors are thinking like you. The fact is IMO the function of GlobalStar's offering can be duplicated by collaboration of wireless providers. Ever heard of Iradium? It took too long to launch and cell phone can do it and do it better.

What GX has is unique. Yes, some function of their offerings are done through collaborations of big service providers around the globe. However, GX's seamless network offers a one stop stop, true end to end VPN, VoIP, private lines between 4,000 cities throughout the world. Theoretically, a true one hop network from one end to the other. Whereas other service providers have to have many handoffs from one network to another. When something doesn't work, it is a nightmare to fix and it's a nightmare to customers. Customers know it but they had no choice. Now, they have. That's the main reasons GX is able to woo customers from incumbent large service providers.

It may be a surprise to some of you. GX is operating cash flow positive. They are not , however, free cash flow positive due to Capex spending, huge depreciation of an international build-out network. Not only can GX pay its interest and preferred stock obligations, they even fund part of their Capex through operating cash flow Q over Q. Once the last part of the Asia network is finished, i.e. from Japan to Korea to Taiwan and back (projected at the end of 2001), Capex spending for next year will be significantly lower.

They have about 3.7b at their disposal. They just re-affirmed guidance. They will end the year with about 1.7b to 2b left. They are projected to be cash flow positive 2nd Q of 2002.



To: Maurice Winn who wrote (214)8/30/2001 3:45:48 PM
From: Theophile  Respond to of 586
 
Maurice, I got the picture about why GSTRF was a hold. The problem being the execution was not getting better, but getting worse. Gateways delayed, handsets delayed. And there was NO COMPARISON to IRID from what I could see. I completely ignored the marketing angle of "what if they don't come now that it's built", and focused strictly upon execution and management's discussions about the excuses for it not being on time. Somehow there were so many missed dates and sloppy deals for getting the network accepted by incumbents, later to be disclosed as purely the fault of VOD, that I simply took what was left and fled.

I feel the same repetition for GX in many ways, except here the incumbents have continually launched as many destructive missiles at GX from their own platforms, not from within the platform as did VOD with GSTRF.

The news release by Reuters yesterday was simply appalling at its brazen rumor mongering. They reiterated every single rumor. Not that Reuters is a GX competitor or anything, they owning (along with France Telecom) the competing (haha) cable system Radianz. Reuters is one of the largest financial houses on the planet, and yet people somehow believe the news published by Reuters is gospel. Could it possibly be that Reuters, the largest news organization on this planet, could have any interest in reporting facts in such a way as to sustain the status quo? They do not report the facts about swaps with Qwest, or SBC; what gives? Anyone that was around when Watergate hit remembers: the news organizations were SILENT. Only an independent organization, the Washington Post, published anything at all. And Nixon tried to squash the Post financially because they kept printing the story. Nothing like unrestrained Fascism. Look at the crap the media puts out about the various assassinations which occurred leading up to Watergate. Why go against all of that bad rap with an investment, people legitimately ask. Why not go with those in favor with the press. LIKE LVLT???? No way. I went into GX too early. Now? GX is like Baghdad during the cruise missile attacks. Baghdad still stands.

I saw the media manipulate the polls prior to last November election, I stated to several close associates that the media was concerned Bush would not receive the majority vote, and I knew this due to the format of their presentations. I have watched the media for 30 years (I began when I was 20, after seeing some news article manipulated by Customs Officials in the Miami Herald. I never quit watching to see how the facts are misrepresented in such a way that this could indeed be considered intentional untruth, commonly and inflammably termed 'lying' to the public), and it is THEY, and NOT the politicians that need to be feared. Monica? Yeah, right, just so happened this bimbo gets put in place with a sexist, and then for some reason keeps a dress for later delivery....just so happens her friend Tripp keeps a recorded diary of conversations? America, wake up.....)

GSTRF had very little media bad-mouthing. I still believe VOD was against GSTRF succeeding because it would instill CDMA around the globe, and very big powers wanted that not to happen. VOD and BT combined with DT tried, and succeeded, in manipulating the prices of the EU wireless auctions to the point of hoping to drive ALL competitors out of business due to debt overhang. Does this sound AT ALL familiar to the GX story?

Remember history, or be doomed to repeat it.

I am accumulating GX, and hope to accumulate further when the debt downgrade is announced (presumably it will be soon). I may be another GSTRF statistic with my GX policy, but it won't be for the same reasons, anyhow!!

This post was done in the appropriate Maurice Winn Format, I hope<g>. Perhaps it should be longer?

Martin