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

To: dr. killjoy who wrote (527)	3/25/1998 4:31:00 PM
From: Robert Dwyer	Read Replies (1) \| Respond to of 3873

Dr. Killjoy....the way I remember the phrase is "Why let facts get in the way of a good sales presentation?" First heard that from a snake oil salesman who sold oil and gas partnerships disguised as investments. I appreciate the facts you offered. The company had told me that they had $3 billion cash right now.....that is also the number that I gelaned from their web site ....I added the Ctex and simply inquired as to what one might value the coal and computer biz. I used a number of $5 billion as an asset value and that came to $34 per/share. Another earlier poster had indicated he felt $50 was closer based upon his analysis of the other businesses. As far as book value goes, you are misunderstanding my criticism of that measurement. Earlier contributors to this group had quoted book values in the $10 range-- extracted from financial documents. I simply state and still state that 'book' value in the traditional accounting method generally books assets at cost, not current market value. LVLT has a number of assets (CTEX, PKS INFO and the Coal) that are probably 'booked' at less than the current market value. I felt a discussion of current asset values would be worthwhile. You have contributed your analysis and I thank you. But what you call BOOK, I call CURRENT ASSET VALUE---simply a matter of semantics. As far as the stock goes, I am simply looking for input in to how some other people are evaluating the company. As I said, I do not have all the answers and was hoping that using this forum would give me some perspective. I am familiar with the various stages of venture investing and the rates of return sought by such individuals and their funds. I was simply trying to provokle some thought and input along those lines. So far, most of the enthusiasm is based upon management which is fine. I have been a long time CTEX holder and have seen the results of the "Kiewit" touch hit the bottom line. My rules of investing, which incorporates management, also calls for a good look at the industry, the company's position in that industry and the price you have to pay to participate (risk/reward). Management is a key component but just one of four that I look at before plunking down my money. I am sold on the industry....I believe that management is top flight and believe they can establish a foothold in the IP area which, based on my understanding, is the chosen technology of the future information network. I am just trying to initiate a discussion of the VALUATION side of the equation. I apologize if it sounded like a "PITCH".....I was simply asking a question.