(LVLT) - Level 3 Communications Message Board

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Technology Stocks : (LVLT) - Level 3 Communications

LVLT 53.63

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Nov 1 5:00 PM EST

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To: Glenn Petersen who wrote (3165)	3/23/2002 9:56:03 AM
From: Leroyt	of 3873

Glen, This is one of the weakest articles I've ever seen trying to "cash" in on the state of telecom FEAR. For example: "Then there is the way the company is handling its debt. According to filings with the SEC through the third quarter last year, the company has been funding some of its debt repurchases by selling investments and raising new debt -- obviously not the best way to go. " LVLT has been using CASH and issuing some stock (when #'s are favorable). Stock has been issued somewhere in the $13-14 range. Current stock is at $3.50. Not bad. I know of ZERO new debt being issued. (Bald-faced lie?) Got me. How about "...selling investments and raising new debt -- obviously not the best way to go." Why not selling investment??? If an investment (such as CTCO) is fairly priced and you sell it to buy back debt at 0.35 to 0.40 on the dollar, you're doing pretty well. IN FACT, you have to PAY TAXES on the CAPITAL GAIN. TRUTH IS: Level 3's accounting methods are VERY conservative and this article either had to look for little pieces that are trivial and then add their own editorial comments. " ... not the best way to go." Or, if you search for their article on the Lightreading site you get this: "News Analysis: Is Level 3 Next? - 3/15/2002 1:00:00 PM Level 3 has some of the shakiest finances in the carrier space but has so far avoided the spotlight. What gives? " News?? THAT is an editorial. "What gives." Let's look at LVLT's current situation: $1.3 billion of cash 650 million of available revolver $500 million (approx.) of assets to sell (CTCO partially sole -- one third) recent $120 million tax refund from March 9, 2001 tax bill Current cash burn: approximately $125 million per quarter Sales increasing, disconnects "should" end soon Prices stabilizing in first part of 2002 For every $.40 cents of expenditure, LVLT gets $1.00 of annualized revenue which pays itself back in about the first year. Get the cash back and do it again. Articles like the lightreading.com article are weak and their reason for being .... is questionable or simply trying to cash in on TELECOM scare. You decide. later, leroyt

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