Is there a new Gilder report out?
From AOL,
Level 3 Shares Fall After Being Cut From Gilder List
New York, Nov. 13 (Bloomberg) -- Level 3 Communications Inc. shares fell as much as 20 percent after George Gilder's Technology Report removed it from a list of companies poised to benefit from the growth of the Internet.
Level 3 is building a fiber-optic network in the U.S., Europe and Asia to send telephone and Internet traffic. Shares of the Broomfield, Colorado, company are down 63 percent this year.
Prices for services from companies such as Level 3 could fall, Gilder said in his monthly report to clients on his Web site. The company, under Chief Executive James Crowe, spent $1.4 billion in the third quarter to expand its network, and sells some unused space to corporate customers.
``Perhaps Jim Crowe's ultimate role will be as a wholesale supplier,'' Gilder said. ``Perhaps Level 3 is just a construction company -- no more, no less.''
Level 3 shares fell $5.69 to $30.38 in midafternoon trading. Earlier today, the stock fell as low as $28.75.
Vik Grover, an analyst at Kaufman Bros., said Gilder's comments was hurting Level 3's shares today, although it was already reflected in the lagging stock price. New York-based Grover today raised his rating on the company to ``strong buy'' from ``buy.''
``These concerns are valid, but at $29 (a share) they're not valid to the shareholders,'' Grover said. ``It's a buying opportunity.''
Gilder, based in Housatonic, Massachusetts, and Level 3 weren't available to comment. Level 3's customers include America Online Inc. and EarthLink Inc., the No. 1 and No. 2 U.S. Internet service providers.
Nov/13/2000 14:15 ET |
