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Level 3 (LVLT -9.8%) takes a hit in spite of its Q3 beating estimates. The company reported...

Level 3 (LVLT -9.8%) takes a hit in spite of its Q3 beating estimates. The company reported revenue of $947M for the quarter, which was better than Street expectations of $912M, but the company disappointed on a per share basis, posting a wider Y/Y EPS loss of $1.47 due to higher interest expenses and acquistion costs related to its Global Crossing transaction.
Comments (2)
  • cattman
    , contributor
    Comments (4) | Send Message
     
    Talk is cheap. Data is apparently cheaper - I said that! Given the fundamentally sound nature of LVLT's assets, actually physical cable and rights of way, and its position at the core of the US backbone fibre network it clearly has a future, and more so now having consolidated Global Crossing. I imagine a fair bit of the terestrial trunk leg of smartphone data is going this way as well. This is a better model than flaky outfits reselling the capacity somehow. What I don't get is why they can't charge a profitable price for their services after all this time. Is there serious competition?

     

    In the late 90's I worked to market one of the two successful long term global services provider to IPO so know the data price problem that cost me my job in .bomb. Idiot new Telco entrants trashed the data price to buy a chunk of the extant market while investing in massively unneeded surplus global capacity- parallel networks- to provide services on and then went broke - just like building new railways alongside the others when passenger numbers are not that flexible - stupid. The solid originals were made non- viable by the new price floor (not sure why they didn't raise them). Infonet had to sell itself to BT and the only other proper player, Equant, to FT. Lesson?

     

    Maybe LVLT have to get consolidated or consolidate some more so it can control the market better. My only worry is they go Chapter 11 and someone gets all that investment for peanuts. They really need to make it hard to be bought and work out how to charge a bit more for data (another pun, sorry ;-) ).
    3 Nov 2011, 07:43 AM Reply Like
  • mv_sidow
    , contributor
    Comments (93) | Send Message
     
    IMO,
    the reverse split told me that this management does not care what happens to shareholder value. The stock is down 30% since then.
    I think they fully intend to run this one into Chapter 11.
    It has all the signs....
    I've never made money on a reverse split stock and mostly they wind up bankrupt in my experience.
    Even if by some lucky move they turn this one around, I don't care.
    Not interested in their failed management team.
    It's been 10 yrs of b.s.
    7 Dec 2011, 01:44 AM Reply Like
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