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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Robert Dwyer who wrote (517)	3/25/1998 2:44:00 PM
From: dr. killjoy	Read Replies (1) \| Respond to of 3873

don't let the facts get in the way of a good pitch! lvlt: $960 million after tax gain on ce sale $275 million cash $340 million marketable sec's $1,050 million in mkt value of c-tec spin-offs totals= $2.6billion + value of coal and pks info coal is on a 200million rev run rate and expects cash flow to decline from $55million to around $13 million in next 3 years, based on the expiration of take or pay contracts vs. current spot mkt prices, what is that worth? 10 times projected cflow? 20 times?$100million to $200million?? PKS info is on a $100million rev run rate and 25million in cash flow but it is eps flattish so what is it worth?3 times rev?5 times? $300 to $500million, 20 times cash flow? $450million? ok so add $600 million for these ops that comes to 3.2 billion TOTAL...of that there is $1.5 billion of investments available to buildout fiber plus whatever they could get out of selling coal. that is a $22 of BOOK VALUE marked to market multiples. unless you think cash deserves a multiple???? FYI....psst little secret...book value is very relevant. what makes it irrelevant is calculating it on the back of a napkin and rounding to the nearest billion. Something to remember is this is not a video game we are considering purchasing a company with hard earned money.