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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: staring who wrote (58133)	10/27/2016 2:39:32 PM
From: E_K_S	Respond to of 78752

CenturyLink up 15%, Level 3 up 6.5% on WSJ report of advanced merger talks If they can do a merger, it will be a much more profitable company. Similar market caps but LVLT has 50% the debt of CTL and LVLT is 3.8x more profitable. A combined company would provide the broadband pipes to the home and be a good candidate to hook up w/ a medi only provider like GOOG and/or NFLX and/or DIS. The key for me is if a merger is done, will the CEO & Board maintain the same dividend friendly shareholder policy as CTL. In either case, there could be a dividend cut but it would be well covered and the combined company could grow faster (A GARP company). There was talk last year that NFLX would be a good merger partner w/ LVLT especially is there was some new net neutrality policies. CTL brings the end user platform (they have a new cloud service) that will deliver OTT Internet to the home and mobile user. FWIW, the GN valuation for CTL is $38.19/share so even w/ today's move higher, CTL is 24% undervalued. EKS