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HolidayBuyer's Guide
Tech Industry

Downgrade sends Global TeleSystems lower

Global TeleSystems fell 19 cents, or 16 percent, to an all-time low of $1 a share Monday after Morgan Stanley Dean Witter downgraded the stock from an "outperform" rating to "neutral."

The e-business and broadband telecom services provider recently announced a massive restructuring plan that will divide itself into four divisions-- GTS Broadband Services, Russia's Golden Telecom, GTS Business Services and GTS Central Europe.

It also plans to sell its GTS Business Services and GTS Central Europe divisions and invest the proceeds into broadband.

Last quarter, Global TeleSystems (NYSE: GTS) topped analysts' estimates but posted a loss of $9.5 million, or 82 cents a share, on sales of $259.8 million.

First Call Corp. consensus expects it to lose 82 cents a share in its fourth quarter and $3.42 a share in fiscal 2001.

Following Monday's downgrade, five of the nine analysts following the stock maintain either a "buy" or "strong buy" recommendation.

The stock peaked at $36 last December.