LVLT stock is currently running on the steam of great future expectations, Mr.Crowe name and latest publicity created by the press with his help. Company recently annnounced projected 1999 revenues of $250-300 Mln and 2000 revenues of $650-700 Mln. Also $2.3Bln in capital expences in 1999 and $2000 in 2000. So Crowe's message is: If company meets 1999 revenues expectations price/sales = 55-60. Company has great plans but no real assets. Well they promise to start agressively building new network but admit it won't be completed til sometimes in 2001. Meantime QWST trades at estimated 6-8 times 1999 sales and almost completed coast to coast network. IIXC trades at some 2 times sales with estimated $900 Mln in 1999. Their network is completed coast to coast and they are expanding north and south - will be done soon. Why would serious investors invest in LVLT now I can't get it. All big boys lined up to buy IIXC while it is available at nice price and everybody is already loaded with QWST. However the same big boys quietly initiating short positions on LVLT. Look at the call prices - they are low.If you so bullish buy them. Based on
valuations and assets this company has very little value now. It was just a momentum play nicely surrounded by positive publicity. Stock like this should be sold on the news and worst is yet to come. Momentum made ownership richer and will make you stuck. As to the merger of QWST and LVLT this is not even funny If slightly overvalued $20 Bln QWST buys no value $17 Bln LVLT it will create $10 - 15 Bln company. LVLT has money to go shopping now and they will do some shopping which sure will not help the stock price unless they get someone like IIXC now. I am afraid it is a bit too late. With all negativity expressed I do beleive in Mr. Crowe and his ability to execute in future. Well, competition is not sleeping too. There will be some 3,4,5 supernetworks runnning on the full speed by the time he is done. I currently do not own LVLT stock but think of shorting it, waiting for earnings if price picks up.
You don't understand this company and you have not done your home work. Go to the web site to learn about the assets of this company ; then you will be able to discuss this intelligently. (www.Level3.com)