Through its operating subsidiaries, the Company engages in the communications business. The Company is facilities based provider of a range of integrated communications services.
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Demand for data transmission is growing exponentially and the major telcos are offering the public an all-you-can-eat buffet for a fixed price. The populace is gorging on this buffet with no signs of putting down their forks. LVLT owns the pipes the major telcos need to expand. It is just a matter of time and time is what LVLT has bought itself by the recent debt issuance of $280M. Should be a fun stock to watch over the next few years if you happen to be long!
I respect your score and intelligence and am trying to make myself buy LVLT. If the things you say are true, why the 10% sales decline and failure to make money in 10 years? ... also, isn't 6B in debt almost stifling? ... 20% of sales goes to debt? ... is this a viable business plan?
Respectfully,
MSM
While your statements in regard to demand are accurate, your assumption of the need for Level 3's 'pipes' is off. With the utilization of DWDM technologies, most carriers have been able to maximize their bandwidth per fiber strand to the tune of up to 160x....With Level 3's historically high costs, they have forced many carriers and ISP's to embrace the different technologies now available and thereby creating less of a demand for the network.
With the advances in technology, LVLT has an overabundance of fiber, too many regional competitors, an archaic network technology infrastructure and too high of a debt load.
No sane company would ever 'merge' or buy them out as things stand. Too many customers have been burnt by LVLT to even buy the ' we've changed!' spin...
I agree. Its not going anywhere. I'm staying also.