The replacement of the 7% debt by the 5.25% results in a reduction of cash interest rate expense of around $13.5 million per year. So the $40 million cost will return $13.5million per year to the bottom line or about 34% per year. Please don't start with the home mortgage analogy unless you have an interest only home mortgage.
The takeover price will be in the 90's. That may be a long time coming.
The present board will not sellout out for less. No one will pay more than a 10% premium for LVLT. Therefore the open market stock price must be in the mid to upper 80's before there is any chance of someone buying the company.
Please explain how shorting a stock allows you to get in at a discount.
Selling puts might. Buying calls might. But shorting doesn't.
So please explain this new strategy.
The board will not agree to sell below $90+ per share. Since no one is going to offer a premium above around 10% the share price will have to be in the mid $80s before anyone will make an offer.
As near as I can tell the game play over the last year or so is not to add debt but to replace existing debt with debt at a lower interest rate. The lower interest rate goes directly to the bottom line.
Short interest is down but days to cover is up because the trade volume is also down. Looks like folks are going into a holding pattern until after earnings.
The stock price went up when the boss's return was announced. Probably because it freed Sunit to concentrate on financing. His refinancing is contributing a lot to the increase in the bottom line.
I doubt it. The name refers to a protocol layer. Beside they want to be a cable TV company that integrates internet content with traditional TV content.
Don't understand their comment that installation will be so simple that the customer will eventually be able to do it. What is the customer going to connect their boxes to?
Interesting... but the cable companies are integrating internet programing. For example, CableVision now offers Hulu as a channel on its service.
I really liked this: "It has leased its own 12,000-mile fiber backbone, which takes it into the communities the company serves. To get their signal directly into homes—analysts call this “the last mile”—the Layer3 team has struck deals with large infrastructure companies to carry Internet protocol over their networks. "
That last mile is owned by the cable companies Layer3 will compete against.
Search for an article titled: Level 3 Communications Levels Up To Investment Grade
The author claims Moody's Ba3 rating of Level 3's debt is four levels too low. That it show have been Baa2.
He provides a load of reasons why Level 3 is in such good shape.
Then at the end of the article: Disclosure: I am/we are short LVLT.
You are correct. I had hoped that intervention might have helped. Unfortunately, there is nothing left but to put him on ignore. I feel guilty about doing that and hope that someone else in the group might intervene and save him.
I actually thought that you might contribute some ration gal thought to this conversation. Unfortunately, you have demonstrated that you are completely opposed to rational thought. Therefore I cannot do anything but wish you a complete recovery. I will check back in a year or so to see if the treatments worked.
But it is fun watching him tie himself in knots trying to sound rational.
The posts I respond to are replies to posts I made. I ignore your references to Jesse as I assume you use that whenever you don't know the name of the person you are responding to.
If Jesse refers to an actual person please provide some background as I am curious as to why you are so fixated on him. Was he an ex-lover?