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

To: RIOMAN who wrote (790)	4/7/1998 6:39:00 PM
From: Brenden Kuerbis	Respond to of 3873

That last line is interesting, didn't Qwest just purchase a European-wide ISP? I know there are other ISP's available but as fast as L3 is moving, aquiring/merging w/Qwest would make sense. Also if you look at the job offerings at Qwest they are in need mostly of the construction side (Kiewit resources), L3 is advertising for the tech side, pretty good bedfellows I'd say, BWDIK... BTW, did everyone do their DD and complain to Washington using Net2Phone yesterday? Brenden

To: RIOMAN who wrote (790)	4/7/1998 9:39:00 PM
From: MangoBoy	Read Replies (3) \| Respond to of 3873

i talked with the Kaufman analyst today and found his justification for a $93/share 12-month price target lacking. in a nutshell, the $93/share figure is based on this reasoning: (he's heard) L3 will spent $2.5 billion on buildout in '99; he thinks L3 deserves a valuation of five-to-six (let's say 5.5) times plant, or ~$14B; divide by 150M shares and you get... $91/share ("oops"). i said that $2.5B spent in '99 won't translate into $2.5B of lit network in '99, but he didn't seem to care. i asked about valuation relative to QWST and all he could say about QWST was "i don't follow it", "they're doing IP + switched voice, LVLT is IP-only", and "i think QWST will get bought out; L3 is here to stay." why, i asked. "WorldCom will need more backbone networking; QWST will sell out." oK. not a lot of insight on QWST. the impression i was left with was he likes LVLT because he "likes the story, it's a a great story", there's momentum, he made a lot of money on MFS, and it's media-genic: "IP telephony", "all-IP fiber optic network", "James Crowe", "MFS", "Kiewit", "Internet", "bandwidth", etc. he thinks whoever places the LVLT debt (SSB?) will come out with a wave of PR (Grubman) that will drive the stock for a while. he also speculated that more acquisitions were in the offing, sustaining the media spotlight trained on the company. IMO this is the essence of the LVLT phenomenon: rosy memories of MFS, trendy story, momentum, short on specifics. i'll wait until the honeymoon is over and the price retreats to reality. w/ no disrespect toward LVLT shareholders, mark