(LVLT) - Level 3 Communications Message Board

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Technology Stocks : (LVLT) - Level 3 Communications

LVLT 53.63

0.0%

Nov 1 5:00 PM EST

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To: zebraspot who wrote (1024)	6/2/1998 9:54:00 PM
From: Sauron	Read Replies (2) of 3873

Probably better to wait for a level where the market cap can be better explained by an actual business. Just to remind you, LVLT still has a market cap of $7.5 billion, only $3 billion of which can be explained by cash or their ownership of Cable Michigan, RCN, and Commonwealth Tel. That means you're still paying $4.4 billion for a startup and a tiny systems integration business. I've actually forgotten to add in the new shares created by conversion of the R shares, so it's a tad less favorable than I've laid it out. To put it in perspective, IXC has a market cap south of $2 billion and it's backbone construction (now with LEAF fiber) is well underway and it will generate $200 mm in EBITDA in 99. Hmmmmmm! Still air underneath LVLT. Look before you leap.

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