(LVLT) - Level 3 Communications Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : (LVLT) - Level 3 Communications

LVLT 53.63

0.0%

Nov 1 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MangoBoy who wrote (280)	3/11/1998 3:03:00 PM
From: Phil Jacobson	Read Replies (1) of 3873

The market perceives KIWT will be more valuable than MFS in the future. Today's relative value doesn't matter. Valuation models don't work to predict stock prices in businesses growing as fast as this segment of telecom. QWST did what a lot of people predicted they'd do and bought a large revenue and profit stream with their stock. The deal is accretive, just as WCOM's with MCIC is. The market adjusts stock price for whether a company is entrepreneurial and aggressive. QWST scores there, as does KIWT. I'm not pessimistic. This should be a short term, albeit sharp downturn. US Bancorp purchases must have been the key factor in the high-volume price runup and without the upward pressure the price will fall back on low volume and create a base. You can see it happening today. If there was a problem with perceived value there would be much higher volume. The volatility is made worse by the fact it's traded on the bulletin board and not the regular Nasdaq. Question is how low the base will be. Instead of selling and trying to pick the bottom I'll use this as a buying opportunity and average down. QWST has built a great company model (and is executing) and KIWT is well positioned to do the same. I know some of the people they've recruited. They got people who I thought were untouchable, ie, they have their choice to work wherever they want, and they chose KIWT. Re: QWSTS's lack of telecom revenue in '98. If you look at their documents they've been totally up front about using the sale of dark fiber to pay for the construction of their network during their buildout. They overbuilt by 100% and as a result will now have their network substantially paid for on Day 1. That was a great move on their part. Now LCI will fill the network with traffic. What's overvalued now? Stocks are up 2 3/4 today and appear to be entering a period of very rapid increase. I know LCI's CFO (used to work directly for him at his previous company) and he is THE smartest telecom business person I've ever met. QWST is for real and KIWT's got the same potential. Phil

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next