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Gtt bankruptcy
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Gtt bankruptcy

AnaajkskAnaajksk Member
edited March 2021 in General

Hello,

curious providers thoughts that use Gtt. Recently they mentioned bankruptcy.

Comments

  • nope i own shares of gtt tho

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    Friends of mine have been buying shares hoping for a little GME like action.

    Francisco

  • SplitIceSplitIce Member, Host Rep

    From people who know more than I in this field.

    "most carriers are struggling atm not just gtt"

    @Francisco said: Friends of mine have been buying shares hoping for a little GME like action.

    I think you might get better odds at the Vegas tables. Shareholders are usually the biggest loosers in any bankrupcy or debt restructuring.

  • FranciscoFrancisco Top Host, Host Rep, Veteran
    edited March 2021

    @SplitIce said:
    From people who know more than I in this field.

    "most carriers are struggling atm not just gtt"

    @Francisco said: Friends of mine have been buying shares hoping for a little GME like action.

    I think you might get better odds at the Vegas tables. Shareholders are usually the biggest loosers in any bankrupcy or debt restructuring.

    The race to the bottom is pretty rough. You can get flat 10gigs from transit providers for < $500 on smallish commits.

    100gig kit is very expensive as well so they’re having to invest mountains of cash just to keep going.

    Whole industry is due for a correction.

    Francisco

  • @SplitIce said:
    I think you might get better odds at the Vegas tables. Shareholders are usually the biggest loosers in any bankrupcy or debt restructuring.

    After watching what happen to Hertz there could be some money to be made after an announcement. Granted Hertz is a much more common household name to retail, in this market who knows.

  • SplitIceSplitIce Member, Host Rep
    edited March 2021

    @cablepick said: After watching what happen to Hertz there could be some money to be made after an announcement. Granted Hertz is a much more common household name to retail, in this market who knows.

    I dont doubt that it's possible. I just know from past experience that if Banks get ~100%, Senior Debt 60% shareholders may get equity in a new company (or existing revalued & restructured) at 10% value. I've been there. I havent looked into who holds GTT's debt and their assets myself however.

    The current price of ~$2 reflects that possibility, sure. I still think it's a massive gamble, even more so than GME.

  • jarjar Patron Provider, Top Host, Veteran
    edited March 2021

    @cablepick said: After watching what happen to Hertz there could be some money to be made after an announcement. Granted Hertz is a much more common household name to retail, in this market who knows.

    Push the knife in a little deeper :joy:

    Oh well at least I got a car.

  • jackbjackb Member, Host Rep
    edited March 2021

    @Francisco said:
    Friends of mine have been buying shares hoping for a little GME like action.

    Francisco

    I'd advise against it. My first and only dive into shares of business going into bankruptcy protection that I was confident would come out the other side, was $INAP.

    They came out the other side, but wiped all equity so I got a total loss. I definitely do not recommend.

    GME is a bit different because the hedge funds were naked shorting over 100% of the total share float. That was stupid of them and left them vulnerable. GME also has plenty of cash and is far from bankrupt.

    Disclaimer: not financial advice, standard bit about crayons.

  • @cablepick said:

    @SplitIce said:
    I think you might get better odds at the Vegas tables. Shareholders are usually the biggest loosers in any bankrupcy or debt restructuring.

    After watching what happen to Hertz there could be some money to be made after an announcement. Granted Hertz is a much more common household name to retail, in this market who knows.

    except that based on hertz's bankruptcy plan, shareholders will be wiped out: https://seekingalpha.com/article/4410692-hertz-just-filed-ch-11-reorganization-plan-which-will-wipe-out-shareholders, https://www.wsj.com/articles/hertz-stock-nosedives-as-bankruptcy-exit-plan-threatens-to-wipe-out-holders-11614804329

  • jbilohjbiloh Administrator, Veteran
    edited March 2021

    ColoCrossing has GTT in its network in a few locations. We primarily use them for backup. The experience has been just OK.

  • @jbiloh said: ColoCrossing has GTT in its network in a few locations. We primarily use them for backup. The experience has been just OK.

    Just out of curiosity, are you still an employ of CC?

  • jbilohjbiloh Administrator, Veteran

    @jvnadr said:

    @jbiloh said: ColoCrossing has GTT in its network in a few locations. We primarily use them for backup. The experience has been just OK.

    Just out of curiosity, are you still an employ of CC?

    Not an employee however I am still involved in supporting the operation and helping however I can.

    I talked about my role in my interview on LowEndBox: https://lowendbox.com/blog/interview-qa-with-lowendbox-lowendtalk-owner-jon-biloh/

    Thanked by 1jvnadr
  • @Hello71 said:

    @cablepick said:

    @SplitIce said:
    I think you might get better odds at the Vegas tables. Shareholders are usually the biggest loosers in any bankrupcy or debt restructuring.

    After watching what happen to Hertz there could be some money to be made after an announcement. Granted Hertz is a much more common household name to retail, in this market who knows.

    except that based on hertz's bankruptcy plan, shareholders will be wiped out: https://seekingalpha.com/article/4410692-hertz-just-filed-ch-11-reorganization-plan-which-will-wipe-out-shareholders, https://www.wsj.com/articles/hertz-stock-nosedives-as-bankruptcy-exit-plan-threatens-to-wipe-out-holders-11614804329

    Of course the inventors will be wiped out. You don't make money holding the bag. The gamble is that stock pops like Hertz did after the bankruptcy announcement where it went from 0.50 to 5.5 in a week. That was all retail investors thinking they could buy the dip and I wonder how many caught the knife's edge correctly on the way down. I don't think that would happen here as Hertz is much more known to the general public.

    I'm sure someone could make an argument that with the internet being a series of tubes, GTT just got tangled up with all these things going on the internet commercially and there are still vast amounts of information that need to be delivered therefore this cannot go tits up.

  • yoursunnyyoursunny Member, IPv6 Advocate
    edited March 2021

    @Francisco said:
    100gig kit is very expensive as well so they’re having to invest mountains of cash just to keep going.

    100 Gbps is outdated since 2019.

    That's the real expensive stuff.

  • SaahibSaahib Host Rep, Veteran

    @yoursunny said:

    That's the real expensive stuff.

    You are seeing

    World's first 200GbE Ethernet network interface card

    That thing is supposed to be costly.. give it some time to get more mainstream and price cuts.

  • yoursunnyyoursunny Member, IPv6 Advocate

    @Saahib said:

    @yoursunny said:

    That's the real expensive stuff.

    You are seeing

    World's first 200GbE Ethernet network interface card

    That thing is supposed to be costly.. give it some time to get more mainstream and price cuts.

    I need 200 Gbps Ethernet adapter so that I can stream push-ups to 20,000 viewers simultaneously.

    My budget is $84/month.

    When 200 Gbps becomes "mainstream", I want 1 Tbps.

  • jsgjsg Member, Resident Benchmarker

    Please, help me to understand, I'm blind, clueless, and dumb in that field (finance,speculation, ...).

    Shouldn't there be more revenue and profit for carriers when the plandemic creates/expands millions of home offices?

  • DataGizmosDataGizmos Member
    edited March 2021

    @jsg said:
    Please, help me to understand, I'm blind, clueless, and dumb in that field (finance,speculation, ...).

    Shouldn't there be more revenue and profit for carriers when the pandemic creates/expands millions of home offices?

    Data is local for work at home folks. Example, Corp office in dallas - everyone scatters and works at home. Traffic goes over local telco and cable companies to hit the office server. Companies with long haul/transatlantic fibers dont gain much traffic in that specific scenario

    Thanked by 1jsg
  • qpsqps Member, Host Rep

    @jsg Problem is they bought a ton of assets at peak valuations with mountains of debt, then decided they weren't very good at managing the assets they acquired and are now trying to sell them for a loss. The deal to sell the assets hasn't closed yet, so they are teetering on the edge of the abyss while they wait to see if it's going to close.

    Thanked by 2jsg TimboJones
  • debaserdebaser Member
    edited March 2021

    GTT has been focusing on gaining market share by buying competitors small and bigger. Apparently, that has been counterproductive for them.

    GTT bought Dutch transit provider KPN International (former Eurorings) somewhere in 2019. They're losing customers rapidly there now that contracts are expiring, as per some of my connections in the NL ISP market.

    For instance Liberty Global has jumped on these networks with offers they can't refuse (so maybe LGI will be next).

  • SplitIceSplitIce Member, Host Rep

    @DataGizmos said: Data is local for work at home folks. Example, Corp office in dallas - everyone scatters and works at home. Traffic goes over local telco and cable companies to hit the office server. Companies with long haul/transatlantic fibers dont gain much traffic in that specific scenario

    I'd argue that it wouldnt matter anyway. No ones paying for more transit at the retail user level that I've seen. The oversubscription rate has just gone up with demand.

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