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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (10359)	9/27/2001 10:38:12 AM
From: carranza2	Respond to of 74559

I checked GX's price today and found it at $2.00. Surprising, so I checked for a reason. It apears that one of its significant holdings, Exodus, has gone belly-up. This is what Cramer has to say about things now: Don't Let Global Crossing's Bad Investment Become Yours By James J. Cramer 09/26/2001 03:06 PM EDT Click here for the latest from James J. Cramer. Global Crossing (GX:NYSE - news - commentary - research) owned 108 million shares of Exodus (EXDS:Nasdaq - news - commentary - research). It was supposed to be this terrific offset to the $9 billion in debt that Global Crossing has. It wasn't. It never will be now that Exodus has filed for bankruptcy. Now Global Crossing is hung out to dry on its big debt offset and I don't know how it will make it. It is looking like another victim of the dot-com bubble, because, like so many others, it viewed equity -- notably Exodus equity -- as if it were money in the bank. I have been railing against people who are unable to distinguish between banks and stocks. They parked money in the market thinking that it was safer and better than cash. Companies did it, too. Global Crossing was one of those companies. Now the stock is at $2.62. But it still has $2.3 billion in market cap. That seems just plain wrong to me. It should be worth much less given that giant pile of debt. Those of you who own this stock and need the money -- in other words, if you are not as rich as Gary Winnick, Global Crossing's founder -- I would sell it right here. It reminds me too much of PSINet and 360networks and Winstar and Teligent and all the rest.