Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?In the "high-risk, high-return" Aggressive Growth portfolio of his FindProfit advisory, Bill Martin (the original founder of the Raging Bull online investor community) offers "swing for the fences" ideas. Now, he is adding to his position in Global Crossing (NASDAQ: GLBC).
He notes that with the shares off 25% from their recent highs, he is going to "step up and boost our position." He states that while the firm's first quarter results were disappointing --driven by delays in closing an acquisition and higher-than-expected costs -- he believes that Wall Street has been too quick to give up.
Martin explains, "In our view, GLBC remains exceptionally well positioned to benefit from the rising demand for bandwidth (see Ciena's conference call from this morning), as well as the consolidation opportunities in the industry."
He points out that GLBC has made a number of recent acquisitions that he feels should benefit the bottom line as the year progresses. The advisor suggests, "A combination of cost cutting, further acquisitions, and accelerating organic growth will lead the company solidly into cash flow positive territory."
Notably, he observes, AT&T announced that it, along with a team that includes GLBC, has been awarded a 10-year, $20 billion contract. This, he says, is the latest win for GLBC in the government services market, and he expects this part of the business should continue to grow for the company.
Martin concludes, "While it's been a bumpy ride in GLBC so far, we believe that the wind is at the company's back and that investors are being shortsighted. Furthermore, with intense consolidation pressures in the industry, we believe that GLBC's downside is limited by the fact that it is itself a potential takeout candidate."
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
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