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

To: Robert Scott who wrote (292)	3/9/1999 8:16:00 AM
From: Tim Cruise	Read Replies (2) \| Respond to of 15615

Robert, can you please clarify what you mean by "revenue run rate"? I thought Teddy had quoted revenues for GBLX of 1 billion, which changes your numbers a little, but granted would still make it look expensive compared to QWST on this level. Thanks, Tim

To: Robert Scott who wrote (292)	3/10/1999 6:50:00 PM
From: Robert S.	Read Replies (1) \| Respond to of 15615

Robert Scott... Qwest has a revenue run rate of $3.5B with a market cap of $22B = 6+X. Global Crossing has a revenue run rate of $820M with a market cap of $15B = 18+X. That's a HUGE difference and why I sold half my position at 74. I don't believe GBLX is 3X better positioned than Qwest eventhough Europe and Asia telecom rates are significantly higher than here. Your statement has some validity but as a counterpoint, QWST has a market valuation of 6X invested capital, while GBLX is valued at only 3X invested capital. While I like QWST's prospects, I like GBLX's even more. The stock market is a forward looking discounting mechanism and the shareprice action as of late suggests that Wall Street is confident that GBLX will be a major player as a bandwidth provider. Future valuations are also a bet on management and the team assembled by GBLX is exceptional. Perhaps Wall Street feels that not only will GBLX take their current plan and run with it, but that they will improvise, improve, expand, diversify, and take advantage of heretofore unforeseen market opportunities as time marches forward.