LVLT
Level 3 Communications Inc.
TMT
08/22/2014
Presented
| Date | 08/19/2014 |
| Price | $41.89 |
| Market Cap | $9.98B |
| Ent Value | $17.70B |
| P/E Ratio | 45.21x |
| Book Value | $18.64 |
| Div Yield | N/A |
| Shares O/S | 238.29M |
| Ave Daily Vol | 1,990,000 |
| Short Int | 6.23% |
Current
| Price | $53.63 |
| Market Cap | $19.58B |
| Level 3 Communications, Inc., together with its subsidiaries, operates as a facilities-based provider of a range of integrated communications services primarily in North America, Latin America, Europe, the Middle East, and Africa. The company provides core network services, including transport services comprising wavelengths, private lines, transoceanic services, and dark fiber, as well as related professional services; and colocation and data center services, such as cloud, hosting, and application management solutions. It also offers Internet protocol (IP) and data services comprising high speed IP, Internet access, virtual private network, content delivery network, media delivery, Vyvx broadcast, converged business network, and security services; local and enterprise voice services consisting of voice over IP enhanced local service, SIP trunking, local inbound, primary rate interface, long distance, and toll free services; and collaboration services, such as audio, Web, and video conferencing services. In addition, the company provides wholesale voice services, including long distance voice termination and toll free services. It primarily serves enterprises, multinational customers, portals and large search enterprises, regional service providers, systems integrators, and software service providers; online gaming providers, social networking providers, technology companies, and companies that provide video over the Internet; media conglomerates, programmers, studios and production companies, and broadcast station ownership groups; sports teams, and stadiums and venues; governments; and carriers, voice service providers, wireless providers, and broadband cable television operators. Level 3 Communications, Inc. was founded in 1884 and is headquartered in Broomfield, Colorado. |
Publicly traded companies mentioned herein: Level 3 Communications Inc (LVLT), TW Telecom Inc (TWTC), Windstream Holdings Inc (WIN)
Highlights
The presenter is long shares of Level 3 Communications (LVLT), and said investors who are willing to take a longer term view are likely to be rewarded. The company is well positioned in the industry and recently announced positive earnings and an interesting agreement to purchase TW Telecom (a $5.7 billion acquisition); however, the stock sold off following the announcement of Windstream doing a REIT deal. The selloff on the Windstream news was odd and short-sighted, in the presenter’s opinion, as LVLT’s future potential earnings power is underappreciated at present levels (~$42). He thinks shares could trade up to $60 over the next two-to-three years.
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