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

To: qveauriche who wrote (345)	9/30/2001 6:26:35 PM
From: CF Rebel	Read Replies (1) \| Respond to of 586

<<As an aside, we would like to point out Global Crossing has a card many may not be considering - the potential sale of its Global Marine business, which it bought for 800 million (US$1.5-1.6 billion). It generates $700 million in revenues and $165 million in EBITDA and could fetch as much as US$1 billion even in this market, which could overfund the company and pave the way for Global Crossing to consolidate the fragmented telco marketplace.>> Regarding that Kaufman statement, Global Marine was bought for US$850 million. Given the reduction in cable-laying plans in the near-term, not to mention poor global economic visibility, I think it's intuitive to see the value of GM as less than $500M. While some recent reports have claimed data transport will continue it's torrid increase, a comment I read about a week ago still sticks in my mind - that GX management has told analysts that data throughput is growing at 60% year-over-year vs. earlier growth of 100%. This view should be balanced with a longer-term outlook that sees the economy returning to historical growth rates in a year or two and the larger information tech growth that goes with it. That aside, at these prices - both stock and bonds - I doubt management is sitting on it's hands without looking at ways, ala LVLT, of reducing debt exposure for fractions on the dollar. Also, at what price is management willing to buy shares for their own accounts if the company is indeed on solid ground? Clayton's purchase was a token but Winnick could repurchase all of the nearly 10 million shares he got $123 million for in May and still have over $100 million in his pocket. Whether such a purchase would be taken seriously is doubtful given the macro conditions faced by the world at this time, but it could finally, in conjunction with other actions, stabilize the price. It would be nice to know the extent of any direct effect on GX of NYC's business problems. Q3 is over so any warning should be in the next day or two. CF Rebel