Technology StocksGlobal Crossing - GX (formerly GBLX)

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To: Tim Cruise who wrote (4317)2/15/2000 3:05:00 PM
From: TechMkt
   of 15615
We are back over 60!!!


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To: TechMkt who wrote (4318)2/15/2000 3:07:00 PM
From: Tim Cruise
   of 15615
Moved through 60 nicely, now about to mount another assault. Close above 60 and we are looking at a new 52 week high this week. Good luck, Tim

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To: Tim Cruise who wrote (4317)2/15/2000 3:11:00 PM
From: Brian P.
   of 15615
No, please, I insist, you have the last word (but I think we're talking past each other). Options, misused, or overused, can be WILDLY "inefficient". They are a tool for experts--I know you'd agree--and they can be dangerous, or at least inefficient, if used by the inexperienced. The person in question seemed to be inexperienced. Best wishes.

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To: TechMkt who wrote (4318)2/15/2000 3:57:00 PM
From: SecularBull
   of 15615
FEB 15, 2000, M2 Communications - Paris -- Alcatel has been awarded a
five-year contract by Global Crossing to provide the operation and
maintenance of cable stations for the MAC (Mid-Atlantic Crossing), PC-1
(Pacific Crossing), PAC (Pan-American Crossing) and PEC (Pan-European
Crossing) sea link cable stations. The contract also includes an
opportunity for Alcatel to support and maintain the SAC (South American
Crossing) and EAC (East Asian Crossing) cable networks, due to come
into service at a later date. These systems form part of a worldwide
network being rolled out by Global Crossing - the leading independent
provider of global IP-based fibre optic telecommunications systems.
This contract is the second maintenance contract to be awarded to
Alcatel by Global Crossing, as part of Global Crossing's strategy to
subcontract non-core activities.

Alcatel has been successfully implementing turnkey solutions for
customers for a number of years and has acquired considerable
experience in managing multi-vendor networks and operating sizeable
systems. Alcatel has also successfully defined and implemented business
processes for operators and has provided the complex network management
systems and customer service and billing packages.

Christian Reinaudo, President of Alcatel Optics, commented:
"Alcatel's leadership in delivering the full range of
telecommunications services and products is complemented by our ability
to support our customers through the full cycle of operation and
maintenance of their networks. We are pleased to be building on our
partnership relationship with Global Crossing through this second
contract with them for support activities."

Alcatel will be supplying technical expertise, experience and
manpower to support 12 of Global Crossing's cable stations, in addition
to the cable stations operations centre located in London.

Global Crossing is rapidly developing high capacity fibre-optic
undersea cable systems and terrestrial facilities to connect the
leading cities in the world, reliably and cost-effectively, and is well
on course to developing, owning and operating the world's first
integrated global IP-based network to help satisfy the explosive demand
for reliable, high-quality transmission capacity.

Two of the networks were completed by the end of 1999, with all the
cable station personnel in place and operational. The remaining
networks will be completed during the year 2000. The cable stations for
the various undersea networks which Alcatel will maintain are:
Hollywood, FL., USA; Brookhaven, NY., USA; Ste. Croix, US Virgin
Islands; Fort Amador, Panama; Ambush Range, Panama; Tijuana, Mexico;
Mazatlan, Mexico; Caracas, Venezuela; Grover Beach, CA., USA; Harbour
Point, WA. USA; Bredene, Belgium and Broadstairs, UK.

About Alcatel

Alcatel builds next-generation networks, delivering integrated
end-to-end voice and data communications solutions to established and
new carriers, as well as enterprises and consumers worldwide. With 120,
000 employees and sales of EURO 23 billion, Alcatel operates in more
than 130 countries. For more information, visit our web site:

Alcatel is the world leader in delivering full turnkey submarine
network solutions and services. Alcatel leads this industry in terms
of: - having the highest active capacity up to 2.5 Tbit/s for the
long-haul systems and 3.6 Tbit/s for the short-haul ones, using the
latest DWDM technology; - having the largest manufacturing capacity at
85,000 km per year strategically located around the Globe; - using 7
dedicated purposed-designed vessels for a tight control on the delivery

Current contracts, worth US$ 3.1 + billion, include the most advanced
undersea networks in the world today: Atlantica-1 and FLAG Atlantic
systems in the Atlantic, the Japan-US and Southern Cross transpacific
systems, and the MAC and MAYA-1 systems in the Americas and the SAT-3
around Africa.

About Global Crossing

Global Crossing Ltd. (Nasdaq: GBLX) is building, and offering
services over, the world's first global fiber optic network with 97,200
announced route miles, serving five continents, 24 countries and more
than 200 major cities.

The Global Crossing Network and its telecommunications and Internet
product offerings will be available to over 80% of the world's
international communications traffic. Global Crossing hosts more than
300 of the top Internet brands at its web hosting division,
GlobalCenter. Among the brands are some of the largest and most densely
trafficked sites on the Web, including Yahoo!, The Motley Fool, Ziff
Davis, and eToys. Global Crossing's operations are
headquartered in Hamilton, Bermuda, with principal offices in Los
Angeles, California; London, England; Morristown, New Jersey; and
Rochester, New York.

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To: SecularBull who wrote (4292)2/15/2000 5:24:00 PM
From: Frank A. Coluccio
   of 15615
LOF, and HWB,

"It means that if LVLT's softswitching does work as planned, it will be more advanced than GBLX."

... wait a minute! Didn't the Frontier component of GBLX also do a large deal with LU for their softswitch platform?


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To: Frank A. Coluccio who wrote (4322)2/15/2000 5:35:00 PM
From: SecularBull
   of 15615
It is my understanding that LVLT's network is purely softswitched, GBLX is not. I may be wrong.


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To: quidditch who wrote (4313)2/15/2000 5:44:00 PM
From: CF Rebel
   of 15615

As I said, or inferred, in a prior post, anyone who can sell stock UNENCUMBERED is not an insider. The inference is that "unencumbered" means there is no reporting necessary to sell. That's all I meant. Thanks.

CF Rebel

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To: gruetz who wrote (4275)2/15/2000 7:16:00 PM
From: Robert Sheldon
   of 15615
*Robert, would you mind providing the name of that other company you are currently interested in?*

Allied Riser (ARCC)

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To: cardcounter who wrote ()2/15/2000 7:30:00 PM
From: Rupert
   of 15615
Article about Worldwide Fiber IPO mentions GBLX

(this link will expire so the article may have changed by the time you read it)

"Both Strube and Stronge discount the worries associated with the company's relative inexperience in the telecommunications field. Potential investors in Worldwide Fiber need look no further than the Global Crossing story to alleviate their fears."

"They had a really good idea," Stronge says of Global Crossing. "They had financing for it, and they got in touch with the right people. That's an example of a corporation coming from nowhere and doing very well." "


Congrats to all on great GBLX move today. That old 52 week high has got to be history soon. Fed up with looking at it. Q moving up too. When you get down to it, all this cool web stuff has got to flow over someone's fiber...

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To: Rupert who wrote (4326)2/15/2000 8:46:00 PM
From: CRay33
   of 15615
This is the single best summary of GBLX i've read (worth posting now that we're getting some attention):

By Porter Stansberry

In the Information Age the data network is dominant.

The amount of data traveling on networks around the world is growing by 16-fold per year. As more and more people around the world get online, the demand for capacity-for bandwidth-will continue to soar. Companies positioned to supply this bandwidth will dominate.

Let's think about it from an e-commerce point of view. For to sell books this Christmas, they've got to be able to handle a flood of data traffic. They cannot afford for their website to be down, even for a minute. And that goes for every mission critical application on the web...and every email...and as voice becomes integrated with data networks, every phone call, every telephone message...

Whoever owns the best global network will become the most valuable company in the world over the next five years. This company will literally own the real estate of cyberspace. Luckily for us, there is one company that:

1. Owns 1.4 million miles of the most sophisticated fiber optic cable, connecting 170 major cities in 24 countries.
2. Owns the world's most advanced fleet of cable laying and maintenance vessels.
3. Offers every imaginable web and data networking service: voice, web hosting, private line, ISP network support and video conferencing?all at the lowest wholesale prices.
4. Is a partner in data networks spanning across all of Asia along with Softbank and Microsoft.
5. Is building the fastest -server farms- around the world to provide fully redundant web hosting on each leg of its global network.
6. Owns a $1 billion Internet protocol fiber network in North America, connecting 120 of the top markets. Incidentally, this was the only major network that didn?t experience any interruption in service during Hurricane Floyd.
7. Is able to double its network capacity each year. (Current capacity is 2.5 gigabytes per second?but that capacity will double in early 2000 to over 5 gigabytes per second.)
8. Grew core revenue from $100 million in 1H ?98 to over $350 million in 1H ?99.
9. Hosts the largest and mostly densely trafficked Internet sites?including Yahoo!
But, all of these qualities alone are not enough to earn the stock a buy rating in my book.

In the Information Age you have to accept that people matter more than installed capacity. It is truly an era of mind over matter.

All of the above qualities could be copied for around $5 billion - but with the right leadership at the helm, the company I describe above will never have much competition.

It will continue to lower its prices, staying on the leading edge of the pricing curve and forcing any potential competitors to think twice before investing in a global network.

Who would be the right leader for such a tough job?

How about the entrepreneur who arranged the original junk bond funding for MCI's founder, Bill McGowan, back in 1981 -- when competing with Ma Bell must have seemed like an insane pipe dream? Or, what about the entrepreneur who?in just 20 months?built the first privately financed undersea fiber optic cable between the U.S. and Europe and earned a $15 million profit doing it? Or how about a guy who really knows catastrophic change?like someone who was born into vast wealth, then, at age 16, watched his family go bankrupt and saw the stress kill his father via a massive heart attack? Or, maybe you'd
rather gamble with a sure winner-like the guy who made a billion dollars faster than anyone else in history?

Well, believe it or not, all of those qualifications come with just one man-Gary Winnick. And, it's his company?Global Crossing (OTC: GBLX, $33) -- that I describe above. When you invest in Global Crossing, you're buying the most technologically and geographically advanced data network available, plus you?re getting arguably the best CEO in the history of telecommunications.

Wall Street is missing the point

Remember, my investment strategy is based on finding companies using new technologies to vastly reduce consumer prices, in markets that mainstream investors don't understand.

It's easy to see how Global Crossing is using new technology to lower prices. Their fiber and dense wave multiplexing systems are capable of doubling their network capacity each year. That amount of bandwidth growth will rapidly drive down prices. But our real opportunity lies in taking advantage of Wall Street's misunderstanding.

The Street thinks that Global Crossing is a phone company.

Wall Street assumes that as voice communications become much cheaper, companies like Global Crossing will suffer falling revenues?much like I have been predicting AT&T will. This confusion saw the share price of Global Crossing fall in half. But the sellers are absolutely wrong.

In the first place, by building the crucial links between continents, Global Crossing will own the bottlenecks of global data networking-the crucial links in the World Wide Web. Global Crossing has bought the Park Avenue of cyberspace?real estate that will always command a premium.

And even bigger misunderstanding relates directly to our secret of lower prices. Wall Street still believes that lower prices will mean lower revenues. And it does-for companies like AT&T that don't have the right technology in place. That's why AT&T's consumer long distance revenue is now down 7% for the year.

But Global Crossing is different-it's a company built to succeed in an environment of rapidly falling prices. For example, look at Intel. Here's a company that makes lots of money as chips become cheaper because the lower prices cause demand to soar.

As long as Intel remains the innovation leader in microprocessors, they are able to garner most of the profits in that business. I call the leading company in sectors where prices fall dramatically, the Pinnacle Provider. You will find that the pinnacle provider typically garners 80% of the profits in their industry by being the technological innovator and the price leader. And that?s what Global Crossing is?the pinnacle provider for global data networking.

To give you an example of how Global Crossing will grow revenues even as prices for bandwidth plummet, let's look at one of their newest businesses?web hosting.

Over the next year Global Crossing will construct ten new multi-million dollar -data centers,- in crucial connectivity points across its global network. These are the -data farms- that house the world's busiest and most important websites. Web hosting is expected to grow from a $2 billion dollar a year industry this year to a $14.6 billion industry by 2003 -- and I think those numbers are very conservative.

Right now Wall Street thinks that the server farm business is about owning good computer servers-like Exodus Communications (OTC: EXDS) does. So Wall Street's brain dead Internet investors have bid the shares of Exodus up to ridiculous levels, from around $5 to over $80 per share this year. But they're making a crucial conceptual error. Good web hosting isn't about web servers. Good web hosting is about maintaining very vast, guaranteed connections with your users.

Exodus Communications doesn't even own a data network-it rents space from...that's right, Global Crossing. So I ask you: who's going to be able to offer the lower price for top quality web hosting-Exodus or Exodus's network provider?

I'm buying Global Crossing because I believe it's going to be the price and quality leader in global data communications for the next twenty-five years-a period of time that will see a complete revolution in communications. And because of the promise inherent in such an opportunity, I'm going to use a wide, 50% trailing-stop loss on this investment

End of piece By Porter Stansberry

By Robert (Paytient -- on the Fools board)

I posted this on another board in response to a question as to why someone should buy GBLX over another telecom like WCOM. For those that are new here it may answer a few questions on why we are so upbeat on the future for GBLX. For the old timers it may be of some use, especailly the discussions on the venture portfolio GBLX owns.

I point some things out that perhaps others can use to continue their DD on GBLX. Having said that, please tear this apart, I would like to see where my flaws in thinking are. I't took some time to write and there may be some factual errors in it, so please be kind and ask if you don't understand or agree with my assumptions, I will be happy to attempt to calify and elaborate.

Here is what I think the revenue stream is going to look like over the next few years for GBLX Notice the decline in rates as the -bandwidth glut- brings prices down. This is the heart and soul of the GBLX business plan.

1. How will it compete with WCOM? WCOM is also building undersea optical fiber but has more terrestrial coverage. How do the business models compare in your opinion?

What you are getting in GBLX is a pure play in the fastest growing segments of WCOM. WCOM is split about in half between fast growth and slow growing segments. You are also getting the fastest growing segments of WCOM at about a third of the valuation.

The basic business model of GBLX thrives off of the decreasing rate increases that additional market capacity will bring. For every 50% decrease in rates there is a corresponding 175% increase in demand. This is the heart of the Global Crossing business model. Why is this significant? Because through the use of DWDM GBLX can increase bandwidth. To give you an example, the recent Pacific Crossing light up is running at 80 Gigabits, but can be increased to a half terabit with modest modifications.

No one out there is really LAYING a lot of cable at this time. There is a lot of talk and marketing hype, but very small amounts of cable are actually physically going in the oceans.

On the west coast, consortiums of carriers are unable to land anywhere on the west coast of America because of anti trust issues. GBLX has a two year head start here.

Let me review some of the network segments and discuss where each is and when it plans to be done; followed up by how networks are valued and then supply and example with the recent Racal purchase. I hope this will answer your questions. If you need to see what these abbreviations mean, go out to the GBLX home page and find the interactive network map.

AC1 is in service now and has already been upgraded through DWDM for huge revenue gains on the existing network.

AC2 will be completed my March of 2000, most of it is done now.

Global Access in Japan is in service now and the Tokyo loop should be done by 6/2000.

Mid Atlantic was just turned on and the full ring should be ready by 6/2000.

Pan American initital segment should be completed by 3/2000 and the ring done by 6/2000.

Pacific Crossing is turned on now and the full ring should be operational by 7/2000.

Pan European has been turned on now in December of 1999

The South American network ( GBLX doing build out) for dark capacity will be competed in 3/2001

Global Crossing has a solid history of bringing these networks online 3 to 6 months early. They are a year to two ahead of anyone else in the market.

A network is valued and measured by not just points on the network, but by the combinations and permutations of the network. This is a very important point. A combination is point A to point B, a permutation is actually two connections segments point A to point B and then back again.

Now for an example of how this synergy translates into an advantage for GBLX. GBLX paid 1.6 billion, or two times revenue for Racal recently. With the purchase they got 2000 points of presence, 70% of which were within 5km of 70% of UK businesses. Up until that time GBLX was paying 750 million in landing fees in the UK. In two years the savings from not paying those fees pays for Racal. Pretty slick hugh? If WCOM had done that it would have taken them 5 to 7 years to recover their cost because of the handoffs WCOM has to do to do the same thing. This is a very big difference in their business models.

Let me continue?

GBLX has a venture portfolio worth somewhere around 4 to 5 billion dollars that are hidden inside the company. What do they have?

1. Corvia ? multi terabit switching
2. Narus ? a network data facilitator
3. Northpoint a data only CLEC
4. Pluris ? IP switch routers
5. Sonus ? carrier solutions and convergence of packet networks. ( where we are heading)

GLOBAL CENTERS ? housing server farms and data storage coming from recent Frontier purchase. Here is a great formula gang: GBLX Global Centers will be building out about 1.8 million square feet for GlobalCenter at a cost of about $300 a sq ft. They will then lease out the same square footage at $900 per square foot for a net annual income return of about 300%. My kinda guys. Again, synergies that a WCOM could simply not pull off.

Lets look closer at GlobalCenters and a comp, Exodus, which is selling at 90 times trailing sales. BTW, Exodus has no network attached, they have to lease. If you use just 50% of the current valuation of Exodus to value Global Centers; two years down the road you get a valuation of GlobalCenter then that is the same as all of GBLX now!

And two cherries on the hot fudge Sunday. Next year GBLX will spin off both GlobalCenters and the Asia Crossing business.

End of piece By Robert

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