Global Crossing Ltd. stock plummeted Monday, dropping more than 11 percent to establish a new 52-week low. First Union Securities downgraded the stock, which was trading mid-afternoon at $7.71 a share, down from its close of $8.86 on Friday. It has lost more than 40 percent of its value over the past week.
Global Crossing shares tumble
Global Crossing Ltd. stock plummeted today, dropping more than 11 percent to establish a new 52-week low.
The stock was trading at 2:30 p.m. at $7.71 a share, down from its close of $8.86 on Friday. It has lost more than 40 percent of its value over the past week.
First Union Securities today downgraded the stock, and the beleaguered telecommunications sector has been hurt by bad news from Nortel Networks Inc. and others. In addition, the New York Times today published an article claiming a global glut of fiber-optic network capacity worldwide.
Global Crossing officials have denied any such glut exists, and point to a backlog of orders to prove it.
In other news today, Global Crossing said it expects to pay at least $400 million less in 2001 tax payments. The company said taxes payable for 2001 by its North American operations now are projected to be less than $500 million. That reflects after-tax proceeds from its expected sale later this month of the Frontier Communications local-telephone companies for $3.5 billion.
The new tax projection reflects both the gain on the sale of the ILEC business and operating losses expected in North America.
The company also obtained $250 million asset-backed receivable financing.
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