I just heard a rumor about globix.com

it seems they only have 2 months to live

rumor found on ****edcompany.com

Pud is somewhat good on getting the inside scope.

anybody care to confirm this ?

Sqposter / Michael

Not good.
We can only wait and see.

I would say that it is a good rumor as Pud is quite reliable.

Have they filed for chapter 11 yet? Also when a company like that is in trouble and goes bust, a competitor might buy their customer base and continue to provide service.

Boy this is getting bad providers are dropping all over the place it makes it hard to say whos going to be around next month.

It is just a RUMOR,

given it's from Pud, and he has a good track record but don't kill off the company yet. For all we know they might be out of the jam.

Just be protected with a back up plan.

-Sqposter / Michael

I went to that website yesterday, and for me to read the rumor I have to pay money. GRRrrr. It's like 75 bucks a month or something like that too. YIKES! We'll just see.... ;)

-Kyle

Originally posted by Kylecool
I went to that website yesterday, and for me to read the rumor I have to pay money. GRRrrr. It's like 75 bucks a month or something like that too. YIKES! We'll just see.... ;)

-Kyle

the web site is free. there is no charge for it.

To view certain things, it's free. Some parts like comments or something like that, I don't remember the specifics, you need to pay. I think I was able to view that one, it was a different company I couldn't..... hmmm... ;)

-Kyle

Globix apparently released financial results today for their fiscal year ending in September.

From hoovers.com, I take it their share price was as high as $60 last year and the last price was 17 cents. Need I say more?

WOW! True..... Thanks for the stats. ;) They help paint a more accurate picture in my mind, and I'm sure they do in others' as well. I bet they will be gone in 2 months.

-Kyle

Originally posted by Gordo
Globix apparently released financial results today for their fiscal year ending in September.

From hoovers.com, I take it their share price was as high as $60 last year and the last price was 17 cents. Need I say more?

no offense gordo, I bought priceline at 1.12 and ariba at 2.50. where some stock sit there could be some good value.

i use to run a spread sheet on ocean transport companies that traded under 4.00 and would find many sweet jems. But I think you might be right about this one. this has got that death smell of up and comming failure.

-Sqposter / Michael

They've already sacked quite a bit of their workforce. I'd say it's highly likely that these guys will be defunct in about 2 months. As far as I know FC has been very acurate in all such predictions/newsbits. Well only time can tell.

Just think. . .Someone who paid $60 last year for a share can now make a sizable down payment on a postage stamp.

I actually heard that rumor also about Globix. Word has it that they got rid of a majority of its US sales reps along with National accts. It's a rough time for everyone in this industry right now.

Originally posted by Gordo
Just think. . .Someone who paid $60 last year for a share can now make a sizable down payment on a postage stamp.

LOL :)

wait how about pets.com
that went from 90+ to zero.
can you imagine the beating that those people took if they were long the stock. UHHGG

sqposter / michael

Originally posted by Kylecool
To view certain things, it's free. Some parts like comments or something like that, I don't remember the specifics, you need to pay. There's a "premium service" that you can pay for. What you see otherwise are sort of filtered results; a lot of the rumors and tips that are submitted don't get posted on the site so you can pay to access the raw database. That's $75. You can also pay $25 monthly for the ability to search the message boards. That's included with the $75 service as well.

Yep, that's it! ;)

-Kyle

Globix in Early Bankruptcy Talks (http://www.atnewyork.com/news/article/0,1471,8471_946521,00.html) -- -- from atnewyork.com

By Erin Joyce

Shares of Internet hosting company Globix Corp. (NASDAQ:GBIX) were trading at 15 cents Friday after dropping below 5 cents on Thursday when the company said it is in preliminary bankruptcy discussions with bondholders.

The announcement was part of the New York company's fourth quarter results that reflected the continuing woes in the telecom sector: net losses more than doubled from the same, year-ago period, primarily due to lease terminations, severance packages, bad debts and troubles with suppliers.

On Thursday, Globix said it is in discussions with an informal committee of bondholders who hold about 48 percent of its $600 million senior notes. The talks are aimed at restructuring its debt load in a pre-packaged bankruptcy proceeding. In addition, similar talks are ongoing with preferred stockholders.

"While there can be no assurance that these discussions will lead to an agreement, it is likely that any such agreement would result in the bondholders and preferred stockholders owning nearly all of the equity in the reorganized company, resulting in a near total dilution of the existing common stockholders' interest," Globix said.

For the fiscal fourth quarter which ended Sept. 30th, Globix's net loss was $73.6 million ($1.89 per share), more than double its net loss of $30.1 million (81 cents per share) during last year's fourth quarter.

During the fourth quarter revenues were $25 million, compared to $25.9 million in the prior year quarter. For the fiscal 2001 year, Globix said revenues were $104.2 million compared to $81.3 million in the prior fiscal year.

Globix, which has been scaling back its data hosting operations at sites around the globe, took an $18 million restructuring charge during the quarter, which included the termination costs of leases, write-off of leasehold improvements, excess equipment and employee termination costs.

Globix also recorded a $3.5 million write-off of network assets "impaired by the financial viability of a supplier."

It also took a $4 million charge to reflect an increase in bad debts.

Peter Herzig, chief executive officer, said the company believed it would not be able to meet its previous guidance for fiscal 2002. In light of the talks with creditors, he said Globix would provide new guidance when it releases its first quarter results at the end of December.

In a statement, he also said he was optimistic that the company would reach an agreement with bondholders and preferred stockholders, as one of the most difficult years in the telecom industry came to a close.

"The events of September 11, coupled with turbulent market and economic conditions and the dot-com fall out, have affected all participants in our market. We are seeking to greatly reduce our debt burden so that we will have the necessary liquidity to focus on the competitive advantage Globix enjoys as a premium provider of complex hosting services."

The company closed out its fiscal year with $111.5 million in cash, which the chief financial officer said was ahead of expectations as the company continues to focus on cost reductions and conserving working capital.


December 28, 2001

What would happen to those clients who are with them?? Do they just get disconnected over night?

I just read the same article at yahoo too.

http://dailynews.yahoo.com/h/nm/20011227/wr/tech_globix_earns_dc_2.html