LVLT - Level 3

[doc75]

I know Level 3 has been discussed in the past on here, with a few big proponents (ValueCarl & a couple others).

Has anybody been revisiting this one as it has plunged under $1?  

Just curious.  I've done hardly any research on it myself.  Just noticed it was near yearly lows on huge volume as of late, and Crowe sold a bunch of shares sometime late summer I believe.  I assume the story has been the same for ages:  Great assets, gobs of debt, can't turn a profit.

Cheers
J

[StubbleJumper]

Article from this morning's G&M about potential growth in smartphone use:

http://www.theglobeandmail.com/news/technology/duncan-stewart/economics-of-wireless-means-data-prices-bound-to-rise/article1784965/


There's nothing really very new in the article, but presumably the bulk of the 100-fold increase in smartphone data use will have to employ the existing internet backbone....of which LVLT has a good chunk!


SJ

[ValueCarl]

What's up doc? There's this board over at Yahoo Finance, if I want to engage in "no can do" darker side of the coin conversations.

BTW, with Bill Miller confirmed to have jumped ship with at least 54MM shares in Q3, there may be a lemming effect straight ahead!

Look towards the cliffs over yonder for more herds jumping! 

For that "bandwidth sucking sound" which only (3) has the "capacity" to facilitate moving ahead, I give you these valuable tidbits. Pay particular attention to Crowe, one "keynote speaker" in link #2. And, of course, "do some math" because "if you do the math......" errrrr, you must become bullish on (3) at some "inflexion point."   

http://finance.yahoo.com/news/See-me-ObiWan-Kenobi-apf-3487631850.html?x=0&sec=topStories&pos=8&asset=&ccode=

http://link.brightcove.com/services/player/bcpid70463528001?bclid=90670357001&bctid=90054674001

http://www.level3.com/index.cfm?pageID=491&PR=956

Finally, for those Buffett optimists out there looking for "good businesses" with large moats, here's my invitation to the magical mystery tour.   

http://www.youtube.com/watch?v=ToFQahoDclA 


 

[ValueCarl]

Hey doc,

In all due respect, here's the answer to your question regarding Crowe sales. As importantly, the analyst asking the question, who has affectionately become known as, "The Mouse Lady," because in her bearish state many moons ago suggested that, (3)'s pipes would be better served with "white mice" running through them, has had a "two dollar price target" on the shares for at least two quarters now.

Thanks to "seekingalpha.com" for providing the transcript, for which I am in compliance with their copyright requests. Do you hear me Sanjeev!     

http://seekingalpha.com/article/233708-level-3-communications-ceo-discusses-q3-2010-results-earnings-call-transcript?part=qanda

Operator

We’ll move now to D.A. Davidson and Donna Jaegers.

Donna Jaegers – D.A. Davidson

Hi, good results. Two quick questions for you. Can you talk a little bit more about the large contracts? I thought Time Warner Cable is building their own CDN network, I’m assuming maybe that’s the one that you guys want and then I got another question for Jim?

Jeff Storey

We can’t. We’re not in a position to talk about specifics at this point.

Donna Jaegers – D.A. Davidson

I hate to put you on the spot on this one, but you sold 2 million shares of your stock during the quarter. With all those good news and the stock rebounding, can you give us a little more explanation over why you would sell your shares now?

Jim Crowe

First of all, as you may know, the shares were all sold to members of the Board. So, I would hope the signaling is clear. I had three years of current cash income, salary and bonus that I believe were appropriate to results of the company, but we’re certainly far below historical levels and far below other CEOs. I had a cash flow issue to deal with and hopefully dealt in a way that sent the positive signal to investors.

Donna Jaegers – D.A. Davidson

Thank you.

[ValueCarl]

NBNco in partnership with their Australian government are anticipating $43B in expenditures to build a network with specs like (3), an ability to reach 90 percent of their population. 

Quigley likes to quote "trends" like Crowe's boss, Mr. Walter Scott, a Warren E. Buffett partner. He uses CSCO, a (3) partner, as one of his "sources."

"Fiber is the only way" to provide the speeds needed, according to him in addition to Crowe. Why not all "wireless"? Inherent limitations caused by "distance" as well as limited "spectrum."

When will the US government embrace the (3) network, exclusively, FULL SPEED AHEAD? For their citizens' benefit, it better be soon. imo 


 http://webcast.viostream.com/Player/Default.aspx?viocast=2229&auth=01393d54-7be0-4e68-9227-3cf2723d1905&enableCache=True

http://whirlpool.net.au/wiki/nbn

[ValueCarl]

If Mr. Buffett is really "all in" on his bet "with America," he will not miss the (3) ride of his life. Bill Gates will prove it to him, in about one NY minute, "succinctly." He has been in the equity before(2002), he'll be there again! Don't ask Alice about this one! imo

[brker_guy]

Carl,

The good news of the day for LVLT:

http://blog.streamingmedia.com/the_business_of_online_vi/2010/11/akamai-to-lose-netflix-as-a-customer-level-3-and-limelight-pick-up-the-business.html

http://www.telecomramblings.com/2010/11/level-3-limelight-displacing-akamai-at-netflix/#more-8869

AKAM tried to compete on price, and they lost!

[ValueCarl]

Big (3) is catching a nice bid today on this Content Distribution Network(CDN) news!

It has remained criminal, to watch Goldman use their "control stake" in Limelight(LLNW), as well as market clout to move the price of that security's own market cap, for the little share they maintain of the whole CDN space, and not "owning a physical network," on the other hand. This has been going on from about  $3.50 pps in less than three months.

There were a number of Goldman analysts on (3)'s recent conference call, including some young, Scott Goldman, all curious about when (3) will begin doing MNA dances again. Personally, I'd prefer to see (3) kill this competitor if possible, versus satisfying a Goldman premium price exit plan to benefit from. imo

At the beginning of this year, Akamai (AKAM) took the Netflix (NFLX) business away from Level 3 (LVLT) and became the primary CDN for Netflix, with at least 51% of their traffic. While it was a big win for Akamai at the time, it appears that it was short lived. Due to poor performance issues that Netflix has experienced with the Akamai network, Netflix now plans to move all of their traffic off Akamai in the coming months and will go back to only using Level 3 and Limelight.

http://seekingalpha.com/article/235645-akamai-to-lose-netflix-as-a-customer-level-3-and-limelight-pick-up-the-business?source=yahoo   

   

 

[ValueCarl]

Brker_guy, nice to be thinking in sync with you this morning. Our posts almost hit Sanjeev's wire simultaneously. 

I must add one other thing about this relentless Motley Fool pump job called Akamai(AKAM) now that (3) has confirmed the news in New York today.

The FACT is, they lost competing on price in addition to "quality of service" to the incumbent "low cost provider" of crucial, essential communications services the world can never forgo.

All while CDN remains just one niche component of an "addressable market" inside a plethora of communications products and services which (3) delivers X globe.   

I have always submitted that, the best laid internet protocol roads lead to Big (3)! imo   

   Level 3 Confirms That It Will Supply Services To Netflix       11/09 09:12 AM




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[DCG]

I don't know a lot about this company, but just looked over their recently Quarterly report.

Maybe this is a dumb question, but why on earth does this company own a coal mining company???