Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: N. David Lessani who wrote (2643)	11/14/2000 1:54:12 AM
From: Asymmetric	Read Replies (1) \| Respond to of 3873

David, Sorry, but I don't quite get what was irresponsible about the posting and link to the Street.Com article. The present pricing of the stock of this company makes it worth a closer examination, and I think it helps others to arrive at a better understanding if they understand the "other" side of the argument. Instead of accusing the other party of being short and/or irresponsible, if you were really confident of your position in the stock, you would do a better job of refuting the argument presented in the article in a factual manner. Right now, this company is under fire from two fronts: Gilder attacking the technological strategy, ie basically the business model of this company, and the bean counters, analysts, who are attacking the capital structure, who state this company has insufficient cash to see it thru 2001. This criticism also goes to the heart of the company's business model, it's assumptions regarding capital expenditure and future incoming revenues from sales of dark fiber and telecomm and data services. This is very bad. Either accusation, if proven out, would kill this company. Being no fan of the RBOCs and the Telcos, I would love to see Level 3 succeed, and do so convincingly. But what can you tell me, besides the fact that you will buy more shares, that would convince investors out there to put their hard earned money into this company? Do you know what the cash burn rate of this company is? Do you know why the other CLECs, the ICGs, the GSTs, the PSInets, the ATTs and the MCI-Worldcoms are all crashing and burning, and what it is about Level 3 that will allow them to escape a similar fate? What about Gilder? Is he wrong? If so why? This stock has not been at $30/share in two years. But relative valuation is a potential trap. Unless the questions above can be answered firmly in the affirmative, a sizeable amount of risk still remains, it would appear to me. My deep condolences to all those who invested in this company at much higher prices. With the entire telecomm sector being trashed, a leader needs to emerge...to show it is indeed on firm footing, and and lend strength to and lead the other CLECs out of the bloodshed of the recent few months. I hope Level 3 can be the one. If not, Metropolitan Fiber would seem to be the next choice. But right now the questions surrounding this company are extremely serious ones. Good luck to all. Peter