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Level 3 - LVLT Buyout Candidate?
posted by sunnyday on 6 months ago
768 views

Not a chance (buyout). Declining fundamentals. The company increased revenues-- in a
smoking business--but guided lower as they struggle with the integration of acquisitions.
This stock will smell bad until the end of 2008. And that's if all goes well. Who would
want to buy this company with all its debt and try to integrate it into their model when
the company can't even function on its own. The stock will get a pop if they get a new,
respectable CFO.

The plus side is LVLT is done acquiring and their concentrating on their bottom line but
their top line will suffer as customers leave because they don't have the patience to wait
for the service to become more efficient. My advice: buy CSCO and then take a portion of
those profits and invest them in LVLT in the 3rd quarter of next year. The stock will
still be at the same price.

Disclosure: long (and in pain) LVLT

P.S. Beware of people who say "buyout candidate." They've lost all other reasons to own
the stock.

Last edited on: 10-26-2007 03:02 pm

CHTR ? That company looks like it will go bankrupt any day... they have huge debt and no
Cash flow whatsoever... almost 50% of the stock is being shorted... I don't think it's a
very smart move to play around with that company... But maybe you know something I don't
:)

L:ook into Charter CHTR Money is smelling over there

Do a search on "Answers" for LVLT. I think it was Kartart that said, "Not a chance,"
for someone taking over that much debt rather than waiting for a cheaper price in
bankruptcy.

Definitely do not start your comeback with a speculative play. Sure it may be a buyout
candidate but that is not a good reason to take a chance. It dropped 25 % yesterday.

I think it's too broken and has way too much debt to be a takeover but that's just my
opinion.

I don't trade very often after getting bit in 2000 during the stock slump so I'm looking
to get in and out of stock plays quickly.

A friend of mine mentioned Level 3 Communications as a quick short-term play since it's
been beaten down the last couple of days and may snap-back. He also mentioned it might be
a good takeover candidate.

What makes a company a good buyout candidate? A beaten down price may indicate more
serious problems in my opinion.

Any advice on this stock or should I stay away?

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