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HistoricalPEGuy (67.82)

LVLT -- Good News Coming?



August 31, 2007 – Comments (0)

A good friend of mine owns a small broadband business that requires LVLT services.  He had to renegotiate his contract with LVLT.  His rep told him "Your rates are going up 30% this year, capacity is getting tight".  Needless to say, my buddy is not happy about the hike in rates. 

As a friend, I feel bad for his business.  As a LVLT shareholder, I am overjoyed.  This is exactly what I've been waiting for.... as capacity gets tight, LVLT has a stranglehold on much of the broadband around the U.S and pricing will go up.  When it starts having pricing power, revenues are going to soar.  I am hoping for a wild ride soon!

Please note that I am not pumping this stock.  Take it for what it is - a note from some random guy on CAPS just trying to share information.  I've owned this stock for many years and love the deep investment they made early on.  I've seen posts like mine before and it doesn't mean anything.  Take this with a grain of salt.  Its very possible that only Florida has reduced capacity, not the entire U.S.  That said, I really believe its just a matter of time before capacity is truly reduced accross the globe.  If I'm right, LVLT is in a sweet spot for huge revenue gains.  Long term holders of this stock are gauranteed not to miss the big upside (if there is one).  Short term players are rolling dice, not investing with LVLT.


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