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Telecommunications network provider Global Crossing (GX – 19-9/16) is rallying today after saying it will likely generate between $7.1 and $7.2 billion in cash revenue for 2001. This puts the firm within striking distance to achieve its previously stated goal of 30-percent annual growth. Additionally, the firm said it sees earnings before interest, taxes, depreciation, and amortization (EBITDA) totaling around $2 billion. In mid-afternoon trading, the stock had tacked on over three percent.
In separate news, the company announced a five-year strategic alliance agreement with Computer Sciences (CSC – 56-1/8). The deal is valued at approximately $150 million in revenue for GX.
Last week, GX shares rallied above their 10-day and 20-day moving averages, although they remain below significant resistance in the form of their 20-week and 10- and 20-month moving averages.