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Technology Stocks : Global TeleSystems Group (GTS) -- Ignore unavailable to you. Want to Upgrade?

To: Tavros who wrote (20)	1/25/1999 10:02:00 AM
From: Mr Blue2	Respond to of 73

Thanks for your insight.GTSG does seem like it has great potential, but should it be independent. I have heard the rumor now from two different industry players,albeit it is still a rumor. Do you know why the stock has been under so much pressure recently? did anybody downgrade it?

To: Tavros who wrote (20)	2/19/1999 11:18:00 PM
From: Mr.Manners	Read Replies (1) \| Respond to of 73

GTSG has an approximate book value of $7.30.. and then there's this: To: Jose Matos (12652 ) From: Jimmy Liberato Friday, Feb 19 1999 12:20AM ET Reply # of 12939 Jose, are you still following GTSG (Global Telesystems Group)? I remember you brought them up here last month. I did a quick put after noticing how inflated they were but then pretty much forgot about it until this week when they announced earnings. What has really caught my eye are all the insider sales this month and the new SEC registrations for some 18 million new shares that can now be dumped on the market (judging by the sudden decline this week, it is already happening). My moribund put is even reviving!

To: Tavros who wrote (20)	2/24/1999 8:45:00 AM
From: Mr.Manners	Read Replies (1) \| Respond to of 73

GTSG don't know if you're following it any more but there's this today: Thumbs Down: Global Telesystems Group Global TeleSystems Group (NASDAQ:GTSG - news) (George Soros owns about 12% of the stock) is another player with a retail strategy. The company's five divisions provide wholesale and retail telecommunications services in Europe. In December 1998, the company acquired U.K.-based Esprit Telecom Group (NASDAQ:ESPRY - news) . Not only did Global TeleSystems manage to get rid of one of its closest rivals, but it also acquired a company that boasts retail revenue that is nearly double that of Global TeleSystems', according to Simon Carrington of Merrill Lynch, who was recently cited by Bloomberg. Combined companies will provide services to about 35,000 commercial customers in Western Europe. At this time, however, we recommend investors to avoid the stock due to several factors. The company is least attractive of the three in terms of financial fundamentals. Global TeleSystems generates the lowest revenue per employee in the industry. Although it enjoys the highest gross margin, SG&A expenditures are the largest in the industry. In addition, the company carries substantial balance of goodwill on its books. This line has been expanding on average at a 58% clip during the last three quarters. Heavy SG&A and goodwill amortization expenses are main contributors to Global TeleSystems' operating losses, which amounted to $24.5 million in the fourth quarter of fiscal 1998. Bottom Line: Recent heavy insider selling does not help as well, at least in the short-term. In early January, Global TeleSystems officers and directors unloaded nearly 300,000 shares of the company.