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Technology Stocks : (LVLT) - Level 3 Communications
LVLT 53.630.0%Nov 1 5:00 PM EST

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To: Larry Fowler who wrote (549)3/27/1998 8:58:00 PM
From: MangoBoy  Read Replies (2) of 3873
 
<< An operating telcom (which this is by the way) >>

L3 is an operating telecom? how's that? where are they operating? owning C-TEC stocks doesn't qualify L3 as an operating telco. from L3's WWW site:

The company Level 3 plans to begin providing some services in as many as six major U.S. cities by the end of 1998.

<< What we are buying into is the assumption that the company will be able to acquire enough assets, without diluting our stakes, to generate $3.50 to $4.50 per share in earnings. [...] There is nothing unreasonable about that, especially in a growth industry like IP telephony.>>

it is completely unreasonable. the L3 network will take several years to build out and won't come close to delivering those kinds of returns for many many years.

please explain how L3 will produce $600-700 million of telecom REVENUES, much less earnings, in 1998, 1999, 2000, 2001... (and without stock dilution).

mark
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