Economic Moat
PREMIUM
Capital Allocation
PREMIUM
GTT’s stock fell nearly 40% in the past two trading days on rumors that the company is considering bankruptcy. We don’t assume the rumor is true, but the company’s inability to meet SEC filing requirements and release financial results for the past three quarters, and silence as to what’s going on, make it impossible to judge the merit for ourselves. As such, we are putting our fair value estimate under review.
GTT operates a global communications network, providing telecommunications services to large, multinational enterprises, carriers, and governments across five continents. Offerings include wide-area networks, Internet services (including Internet transit), voice, and other transport and infrastructure services. GTT's network consists primarily of leased assets over long-haul routes and connects in over 600 data centers worldwide. The firm uses other carriers for last-mile connections, and its model results in low capital spending needs. GTT relies heavily on acquisitions to expand its footprint. Customers primarily located in the United States account for about 40% of the firm's revenue, with most non-U.S. revenue coming from customers primarily in Europe.
