LVLT - Level 3

[Guest ValueCarl]

Actually, Mr. Parsad, I have been slowly working on a new language via the internet, as well as utilizing Netflix content to bolster that goal. With all the valuable "content" that is available around the globe, this internet thing courtesy of The Level 3 Network, cannot be dismissed no matter what monopolies and duopolies believe otherwise.

 

It's a wonderful thing for people in general to remove themselves from all "THE NOISE" that is main stream.  ;D

 

Thanks for the warm welcome back.  ;)

[brker_guy]

Sanjeev,

 

My LVLT friend, Carl, has been working his Ruby Programming skills so he can help Google and LVLT to take down the evil empires: AT&T/T-Mobile and Verizon.  Cut him some slack, my friend.  Carl is very passionate about his LVLT investment as I am. 

 

http://www.ruby-lang.org/en/documentation/success-stories/

 

We are watching and are working hard to make some noise in the IP world.

 

Are you going to take Carl to see Mohnish in Huntington Beach?  I look forward to seeing you again in HB soon.

 

Brker_guy

[Guest ValueCarl]

We are being attacked by hyenas circling their wagons again this morning. It's so surreal I am speechless except to say, show me the blood pouring from their HEADS for these blatant acts of idiocy, and utter disregard for the value (3) brings to the global internet experience. 

 

Maybe Prem Watsa can provide some beneficial financing in the form of about $500 million so (3) can connect those 100K enterprise buildings--medium and large--still just 500' feet from their network and finally put it to this EVIL EMPIRE with free loaders like Akamai under their bed covers once and for all! Rather than usury, let's start the ball rolling with high IRR and ROE capital along the lines of Netflix!

 

http://www.fool.com/investing/general/2011/09/08/this-just-in-upgrades-and-downgrades.aspx     

[brker_guy]

Carl,

 

I think you need to write a convincing letter like you did to the FCC and convince Tom Gardner at Fool.BOMB that he ought to teach his minions to be eating their own cooking:

 

Fool.BOMB are still holder of their LVLT shares while their writers are out bashing LVLT.  Beautifully hypocritical!

 

MOTLEY FOOL ASSET MA... 6/30/2011 703,760 0 0.00% $1,147

 

http://www.nasdaq.com/asp/holdings.asp?symbol=LVLT&selected=LVLT&FormType=Institutional

 

 

[Guest ValueCarl]

Mr. DOJ, I swear to you, you have got this all wrong! Yeah, right! Let me give the DOJ a small example of the LIES these MONOPOLISTS continue to use to have their way in advance of abandoning them once the dust settles. Prior to SBC swallowing T REX in putting Humpty Dumpty back together again, SBC was promising its customers that T's "CALLVANTAGE," a newer VOIP product they were rolling out, would be available to their last mile customers once the merger was consummated.

 

Well, rather than accelerate the demise of their copper land line business further, and not to diminish their high margin DSL services, every time I called for years after the merger; I was told the product was still not ready to come to market!

 

The same concept applied to "naked DSL service" which they never allowed their customers to have!  >:( 

 

http://finance.yahoo.com/news/ATT-defends-TMobile-deal-in-apf-3494225955.html?x=0

 

AT&T's lawyers contend that the Justice Department's analysis reflects a misunderstanding of the market. They say T-Mobile, the fourth largest cell phone carrier with 33.6 million customers, isn't a significant competitive threat to AT&T, the No. 2 carrier with nearly 100 million customers. T-Mobile has been losing market share in recent years, a trend that AT&T argues will discourage its German parent, Deutsche Telekom, from investing to improve its own wireless network.

 

In contrast, AT&T says it spent more than $30 billion in network upgrades from 2008 through 2010, yet still can't keep up with customers' growing demand to transfer data over phones and other wireless devices, according to the court documents. But if it can snap up T-Mobile, AT&T believes the added capacity will put it in a better position to deliver better services. AT&T already has pledged to invest at least $8 billion and transfer 5,000 jobs currently in overseas call centers back to the U.S. if the T-Mobile purchase goes through.

[Guest ValueCarl]

Dumping Cable and Satellite Services: The Right Thing to Do For Budget Conscious Consumers

 

http://finance.yahoo.com/family-home/article/113459/cable-tv-budget-friendly-alternatives-kiplinger;_ylt=AshVq2K2XCvuYAon7zgezaRO7sMF;_ylu=X3oDMTFhNXJsYjVnBHBvcwMzBHNlYwNwZXJzb25hbEZpbmFuY2UEc2xrA3lvdXJndWlkZXRvZA--

 

 

 

It's getting cheaper and easier to stream your favorite shows to your television set.

[Guest ValueCarl]

Ben Graham, since I was a young man, I have always thought this way whether it was my own business or the public entity I was passively taking an ownership stake in via equity markets, i.e., the stock market. 

 

<First, think of stocks in the same way that a business person would think of a business.> 

 

Today was a very sad day in the case of a public enterprise whose public investment bank, one who has been enabled by our managers to rape and plunder us in the past with a $62MM stupid hedge that went out of our coffers into theirs, prevented me from sitting in the Beverly Hills Conference room where my CEO was speaking.

 

Here's what happened to me by those bastards at Michael Funk's Bank of America, a dubious bank filled with toxic loans that U.S. citizens will be better served without in the end! 

 

Yesterday, I had called the hotel to find out if there was any protocol for attending the meeting. The banquet mgr., a female named Corey, told us that she was not aware of any registration or invitation requirements but the director of BAC/Merrill's conference would call us back. Unfortunately, they never did.

 

Because the Beverly Wilshire, a Four Season Hotel banquet mgr. alluded to the fact that there were no requirements that she was aware of, we made the trek thinking about the stock as our business, and went to listen to it live.

 

We were dressed like gentlemen, possibly better than Jim Crowe who was wearing his typical sports jacket, without a tie and open collar. We were treated like peasants; however, with an army of pencil pushers searching their lap tops to find out whose client we were in their system in order to be invited!

 

When I told them we were (3) owners with plenty of skin in Jim Crowe's game, ones who had called in advance, and were there to see him speak, telling them if they would just ask him, he would surely tell them to let us in, they made a poor attempt to follow him down the hall where I pointed him out, and then disappeared.

 

When two of the BAC/Merrill reps returned, they stated that Jim had just gone into a closed door meeting five minutes before his stage presence and couldn't be bothered!

 

They also said that there was no way they were going to let me in to see the show!

 

I said this is impossible because I spent three hours in traffic to cover fifty miles of distance to see my corporate Chieftain, and he will be happy to see me there supporting him, so I must go in!

 

With two other security guards, they escorted me out by refusing to check with anyone including the person at their institution who failed to call back interested attendees to their conference center.

 

If this is the way Bank of America/Merrill Lynch treats their citizen public at large considering all the tax dollars we shoveled into their name, I can assure you that all the money in Warren Buffett's bank account will not save them from the IMPLOSION their mismanaged company will endure!  >:(                 

[DCG]

Carl, is Level 3 your only (or largest) holding?

[Guest ValueCarl]

DCG, I have taken you off board to the back office for your desired answer.  ;)

[Guest ValueCarl]

Twelve years ago, Wall Street and their MINION in their omnipotence were writing off Apple depicting its long term demise and inability to make a come back. Forrest Gump be damned!

 

http://finance.yahoo.com/q/bc?s=AAPL&t=my&l=on&z=l&q=l&c=

 

Fast forward twelve years later, and Apple continues to maintain itself as the "largest market cap" company in the U.S. stock market even with its VISIONARY knocking on death's door, with their products being dependent upon everything our network provider does in order to sustain them going forward, or they won't be sustained!

 

It is really just a bi-product of evolution, a freak of nature while excluding intelligent design that the Level 3 Network including nearly $30B of PP&E while forgetting about The Amalgamation with Global Crossing continued to be invested in and built during this period. 

 

http://en.wikipedia.org/wiki/LVLT

 

Network

 

Level 3 Communications operates a large network of the Internet. This includes the continental US[7] and Western Europe.[1][8] It uses trans-Atlantic cables,[9] including Yellow/AC-2, on which it owned and operated two of the four fiber pairs after the 2001 Viatel bankruptcy.[10] Level 3 Communications has also purchased 300 Gbit/s of capacity on the Apollo cable system.[11]

It is the current owner of AS1,[12] but it operationally uses AS3356, which as of 2007 consistently has one of the highest ranked connectivity degrees on the Internet.[13][14]

The company runs a content delivery network which it acquired from Savvis in 2006.[15] Level 3 Communications delivers Netflix video and Apple Inc music content over the Internet.[16]

 

You couldn't find a pack of wolves more dubious, nefarious and treacherous than those who pay allegiance to the short sighted whims of Wall Street BANKSTERS!  >:(   

[Guest ValueCarl]

Today is a sad day at The Corner of Berkshire and Fairfax. For whatever reasons, the proxy who appears as representing the father of deep value investors, Ben Graham, has decided to leave this thread including the removal of all of his valuable comments oftentimes sourced to a plethora of valuable nuggets for (3) owners to nibble on.  :(

 

He will be greatly missed.

 

In the mean time, Jim Crowe met with Goldman Sachs bankers including a young Goldman, Scott, in their NY midst today, with plenty of good things to say as always. I don't believe he nor his supporters will allow his detractors to put him asunder.

 

http://cc.talkpoint.com/gold006/092011a_lr/?entity=24_DQS2DYM

 

http://lvlt.client.shareholder.com/events.cfm

 

   

[brker_guy]

The GLBC-LVLT Merger is APPROVED!

 

http://fjallfoss.fcc.gov/ecfs/comment/view?id=6016842911

 

Finally!

[Guest ValueCarl]

Brker_guy, did you get the memo from the FCC and company Press Release that both operations are mixing and matching beginning the heavy lifting?

 

Yes, it's good to see that the important Federal agencies who must bless the "National Security" issues have laid down the ground rules in "The Agreement" to advise all other pertinent parties that going ahead is now prudent.

 

http://fjallfoss.fcc.gov/ecfs/document/view;jsessionid=TDpPHCMvjQKPGJkxkZbrQ1TtF1gVlh1vMcLHTx5nhX8nYyl5GH5N!510046801!-1836812524?id=7021711201

 

Hopefully, the outstanding agency sign offs and company press release is imminent.  ;) Since the MOUSE LADY's inner eye was telling her sometime in November, she would have to re-evaluate her silly targets including prices made recently.  >:(   

 

[Guest ValueCarl]

Brker_guy, my good friend, I can assure you that our DEAL is DONE now with CERTAINTY! The beauty is that it's two months earlier than the brightest, best, and sharpest Wall Street tools were suggesting most recently.

 

There are going to be many less "white mice" running through our PIPES across the globe now, than The Mouse Lady wishes.

 

Somebody call Donna for the UPGRADE!  >:(

 

http://www.channelpartnersonline.com/news/2011/09/regulators-approve-global-crossing-level-3-merger.aspx

 

 

 

[brker_guy]

Carl, here is the PR on it:

 

Level 3 and Global Crossing Receive Regulatory Approvals

 

 

 

 

BROOMFIELD, Colo. and FLORHAM PARK, N.J. , Sept. 29, 2011 /PRNewswire/ -- Level 3 Communications, Inc. (NASDAQ:  LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that the U.S. Department of Justice has cleared Level 3's previously announced acquisition of Global Crossing . The clearance completes the process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR), and is effective immediately.

 

(Logo:  http://photos.prnewswire.com/prnh/20110523/LA06722LOGO)

 

Level 3 also announced today that the Federal Communications Commission has issued an order approving the transaction, effective immediately.

 

Level 3 expects to close the transaction as early as next week.

 

About Level 3 Communications

 

Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit www.Level3.com.

 

© Level 3 Communications , LLC.  All Rights Reserved.  Level 3, Level 3 Communications and the Level 3 Communications Logo  are either registered service marks or service marks of Level 3 Communications , LLC and/or one of its Affiliates in the United States and/or other countries.  Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications , Inc.  Any other service names, product names, company names or logos included herein are the trademarks or service marks of their respective owners.

 

Forward-Looking Statement

 

Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to:  the current uncertainty in the global financial markets and the global economy; a discontinuation of the development and expansion of the Internet as a communications medium and marketplace for the distribution and consumption of data and video; and disruptions in the financial markets that could affect Level 3's ability to obtain additional financing.  Additional factors include, but are not limited to, the company's ability to:  increase and maintain the volume of traffic on its network; develop effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; defend intellectual property and proprietary rights; adapt to rapid technological changes that lead to further competition; attract and retain qualified management and other personnel; successfully integrate acquisitions; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission . Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

 

About Global Crossing Limited

 

Global Crossing (NASDAQ: GLBC) is a leading global IP, Ethernet, data center and video solutions provider with the world's first integrated global IP-based network.  The company offers a full range of data, voice, collaboration, broadcast and media services delivered with superior customer service.

 

Global Crossing provides services to enterprises (including approximately 40 percent of the Fortune 500); government departments and agencies; and 700 carriers, mobile operators and ISPs.  It delivers converged IP services to more than 700 cities in more than 70 countries, and has 17 world-class data centers in major business centers around the globe.

 

Please visit www.globalcrossing.com for more information about Global Crossing .

 

Website Access to Company Information

 

Global Crossing maintains a corporate website at www.globalcrossing.com, and you can find additional information about the company through the Investors pages on that website at http://investors.globalcrossing.com.  Global Crossing utilizes its website as a channel of distribution of important information about the company.  Global Crossing routinely posts financial and other important information regarding the company and its business, financial condition and operations on the Investors web pages.

 

Visitors to the Investors web pages can view and print copies of Global Crossing 's SEC filings, including periodic and current reports on Forms 10-K, 10-Q, 8-K, and in respect of GCUK's Forms 20-F and 6-K, as soon as reasonably practicable after those filings are made with the SEC.  Copies of the charters for each of the standing committees of Global Crossing 's Board of Directors, its Corporate Governance Guidelines, Ethics Policy, press releases and analysts presentations are all available through the Investors web pages.

 

Please note that the information contained on any of Global Crossing 's websites is not incorporated by reference in, or considered to be a part of, any document unless expressly incorporated by reference therein.

 

This press release contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: the failure to occur of any condition to the closing of the acquisition of Global Crossing by Level 3 and uncertainties as to the timing of the closing; the failure to achieve or any delay in achieving expected synergies and other financial benefits from the acquisition; changes in Global Crossing 's risk profile resulting from the acquisition; limitations on Global Crossing 's financial and operational flexibility that arise under the covenants in the amalgamation agreement that could restrict it from taking advantage of opportunities to strategically enhance its business or improve its capital structure; delays or reductions in purchases from Global Crossing by customers because of their perceived uncertainty about its ability to meet their needs after closing of the acquisition; disruptions in Global Crossing 's business due to current and prospective employees experiencing uncertainty about their future roles with the company and the diversion of their time and attention from ongoing business operations; Global Crossing 's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; the availability of future borrowings in an amount sufficient to pay Global Crossing 's indebtedness and to fund its other liquidity needs; legal and contractual restrictions on the inter-company transfer of funds by Global Crossing 's subsidiaries; Global Crossing 's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of Global Crossing 's Network Security Agreement with the U.S. Government ; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to Global Crossing 's substantial international operations; risks associated with movements in foreign currency exchange rates; risks related to restrictions on the conversion of the Venezuelan bolivar into U.S. dollars and to the resultant buildup of a material excess bolivar cash balance, which is carried on Global Crossing 's books at the official exchange rate, attributing to the bolivar a value that is significantly greater than the value that would prevail on an open market; potential weaknesses in internal controls of acquired businesses, and difficulties in integrating internal controls of those businesses with Global Crossing 's own internal controls; exposure to contingent liabilities; and other risks referenced from time to time in Global Crossing 's filings with the Securities and Exchange Commission . Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.

 

Contact Information

 

 

 

 

 

Level 3 Media:

Level 3 Investors:

 

Monica Martinez

Mark Stoutenberg

 

720-888-3991

720-888-2518

 

Monica.Martinez@Level3.com

Mark.Stoutenberg@Level3.com

 

 

 

 

Global Crossing Media:

Global Crossing Analysts/Investors:

 

Kate Rankin

Mark Gottlieb

 

+ 1 973 937 0417

+ 1 800 836 0342

 

Kate.Rankin@GlobalCrossing.com

glbc@globalcrossing.com

 

 

 

 

 

SOURCE Level 3 Communications, Inc.

 

[Guest ValueCarl]

I am "FEARFUL" of the "GREED" these "VALUE CURMUDGEONS" continue exhibiting tied to the LVLT security, Ben Graham!

 

If you're saying that thirteen years of investing capital now totaling $37.5B with negative returns except for bondholders is heading for a ceremonial end game for cult members, one which has been designed to deliver the final product; a sweet, succulent, Hawaiian Kalua Pig like those I have once experienced first hand, that would be a terrible theft of property knowing the "embedded growth" somehow eluding this enterprise for Job's lifetime.

 

 

Do you remember Job, Ben Graham? He is different from Lott, whose wife should not have looked back on her past for she was turned into a pillar of salt for doing so. Job's wife, on the other hand, told him to curse God and die!  :(   

 

I don't want CULTS. I want the GROWTH that was promised from an INDEPENDENT ENTERPRISE where "money" was "never a problem" to ultimately succeed according to their CEO. 

[Guest ValueCarl]

I am seeing the VISION more clearly now, Ben Graham. Flying pigs that keep falling back to Mother Earth because a group of "cult members" can't accomplish the necessary "throughput," therefore emboldening those with the grease in their palms to keep "clipping" the Pig's wings with much greater than fifty percent off coupons!

 

Somebody from the "CULT," mind you, is going to need to STAND UP and be COUNTED once and for all, so that sufficient BANDWIDTH for ALL is no longer a PIPE dream being made fun of by Wall Street agents declaring those pipes to be the home of "white mice" squeaking through them forever.  >:(     

 

Let's get it done right, this time!

[Guest ValueCarl]

Some from cyberspace think this "cult member" should take the first shot. Certainly, his whole biz model is dependent upon what (3) has built during the past thirteen years.

 

<Bezos said after his press conference this week that he sees the Fire not as a tech product, but as an “end to end service.” This should make you wonder what it might want with HP's (HPQ) webOS business. I would think taking out Level 3 (LVLT) would give it better a better shot at leveling the Internet cost playing field with Google (GOOG).>

 

http://seekingalpha.com/article/296904-what-will-amazon-com-do-next

 

I am just not sure that this "cult leader" has a serious enough "game face" to make "the right price" come "through." On the other hand, it would not be an unwise move for him to make such a bold attempt so that he can laugh his silly ass off all the way to The Bit Bank!  ;)

 

http://www.videohippy.com/video/52076/Jeff-Bezos-Laughing-Freakishly-Hard-on-The-Daily-Show-with-Jon-Stewart

[Cirrus 22]

 

 

Thanks to Level 3 and a handful of other companies, any 3D content can immediately be made available for streaming over the Internet and watched on a normal PC - no need for a 3D TV.

 

 

http://www.level3.com/en/resource-library/videos/level-3-and-3d-delivery/

[Cirrus 22]

 

 

 

Text-Fitch raises Level 3 Communications IDR to B

 

 

12:24 PM Eastern Daylight Time Oct 04, 2011

(The following statement was released by the rating agency.) CHICAGO, October 04 (Fitch) Fitch Ratings has upgraded the Issuer Default Rating (IDR) assigned to Level 3 Communications, Inc. (LVLT) and its wholly owned subsidiary Level 3 Financing, Inc. to 'B' from 'B-'. In addition, Fitch has upgraded the ratings assigned to the various debt securities issued by LVLT and

 

Level 3 Financing by one notch as summarized at the end of this release. Fitch has assigned a 'BB-/RR2' rating to the 8.125% senior unsecured notes due 2019 assumed by Level 3 Financing. Fitch has removed LVLT's ratings from Rating Watch Positive and has assigned a Positive Rating Outlook for all of LVLT's ratings. Approximately $7.2 billion of debt as of June 30, 2011 is affected by Fitch's action.

 

The rating actions follow LVLT's announcement that the company closed on its previously announced agreement to acquire Global Crossing Limited (GLBC) in a tax free, stock for stock transaction.

 

The upgrade of LVLT's ratings recognizes, in part, the de-leveraging of the company's balance sheet resulting from its acquisition of GLBC. Pro forma for the acquisition, LVLT's leverage declines to 6.5 times (x) for the latest 12 month (LTM) period ended June 30, 2011 compared with the company's actual leverage of 8.1x as of June 30, 2011 and 7.5x as of Dec. 31, 2010. Moreover, based on the company's ability to realize anticipated operating cost synergies,

 

the GLBC acquisition positions LVLT to further improve its credit profile and generate consistent levels of free cash flow. The transaction accelerates LVLT's progress in achieving its target leverage ratio of 3.0x to 5.0x.

 

The Positive Rating Outlook reflects Fitch's belief that LVLT's credit profile will strengthen as the company achieves the cost synergies associated with the GLBC acquisition. Fitch anticipates that LVLT's credit protection metrics during 2012 will remain relatively consistent with year end 2011 metrics as integration costs will largely offset positive operating momentum. Fitch expects LVLT's leverage as of year end 2011 (on a pro forma basis) will approximate 6.2x and dip below 6.2x as of year end 2012. Fitch expects to observe the strengthening of LVLT's credit metrics during 2013 as cost synergies begin to take effect.

 

From Fitch's perspective the GLBC acquisition strengthens LVLT's competitive position. In addition to increasing LVLT's scale, the acquisition enhances the

 

breadth and depth of LVLT's service offering and permits the company to expand into new markets. Importantly, the acquisition broadens the spectrum of customers LVLT serves including large multi-national enterprise customers. GLBC's network complements LVLT's existing network and the combined network positions LVLT as a global network operator enabling the company to expand existing customer relationships and capture new customer opportunities.

 

Achievement of expected cost synergies is reasonable from Fitch's viewpoint. LVLT anticipates the transaction will yield annualized cost synergies of approximately $340 million including annualized capital expenditure reduction of $40 million. Over 50% of the expected cost synergies are coming from network expense and capital expense savings. Fitch anticipates that network cost synergies will be realized as GLBC network traffic is migrated to LVLT's network and the company leverages the collective 'on-net' footprint to reduce third-party network access costs. Additional cost synergies will be realized as LVLT rationalizes its combined network and eliminates duplicate circuits. LVLT

 

expects to achieve two-thirds of the run rate cost synergies within 18 months of the closing of the transaction. The cost of synergies is expected to range between $200 million and $225 million, and half of the costs will be spent during the first year following the close of the transaction.

 

Fitch believes LVLT's ability to manage the integration process and limit the disruption to the company's overall operations is key to the success of the transaction. The integration of the networks is primarily focused on long haul

 

assets. LVLT has a successful history of integrating long haul assets with the

 

company's acquisition of Genuity, WilTel and the long haul portion of the Broadwing acquisition.

 

LVLT's liquidity position is adequate given the rating and is primarily supported by cash carried on its balance sheet, which as of June 30, 2011 totaled approximately $584 million. The company does not maintain a revolver and relies on capital market access to replenish cash reserves, which when combined

 

with the lack of positive free cash flow generation limits the company's financial flexibility in Fitch's opinion. However, after considering the effects of the GLBC acquisition, LVLT's cash balance should increase to over $1.1 billion (calculation includes LVLT and GLBC cash as of June 30 as well as net cash generated from financing activities related to the close of the GLBC acquisition) as of June 30, 2011 on a pro forma basis. Fitch believes LVLT's cash position is sufficient to address scheduled maturities during 2012 and 2013 (totaling $566 million) while funding anticipated free cash flow deficits. LVLT's next significant maturity tower is in 2014 when approximately $2.5 billion ($3.2 billion pro forma for the transaction) of debt is scheduled to mature.

 

Positive rating actions will likely occur as the company demonstrates that it is successfully integrating GLBC without material disruption to its operations. Equal consideration will be given to the company's ability to attain cost synergies while maintaining positive operational momentum. Evidence of positive operating momentum includes stable to expanding gross margins and revenue growth within the company Core Network Services segment. Fitch would expect LVLT to be generating consistent positive free cash flow and reduce leverage to 5.5x before taking a positive rating action.

 

A stabilization of the Rating Outlook at the current rating level would coincide with LVLT experiencing difficulty or delay in fully integrating GLBC and achieving anticipated cost synergies. A weakening of LVLT's operating profile,

 

as signaled by deteriorating margins and revenue erosion brought on by difficult economic conditions or competitive pressure will likely lead to negative rating

 

action.

 

Overall, Fitch's ratings incorporate LVLT's highly levered balance sheet, its weaker competitive position and lack of scale relative to larger and better capitalized market participants. The ratings for LVLT reflect the company's strong metropolitan network facilities position relative to alternative carriers, as well as the diversity of its customer base and service offering, and a relatively stable pricing environment for a significant portion of LVLT's

 

service portfolio.

 

Based largely on LVLT's strategy to invest in metropolitan facilities and carry

 

more communications traffic on its network, the company derives strong operating leverage from its cost structure and network, enabling it to enhance margins and rapidly increase cash flows once revenue growth returns. Additionally, Fitch expects that the company can further strengthen its operating leverage as it continues to migrate its revenue mix to more margin rich data services and away

 

from lower margin voice services.

 

Fitch has upgraded the following ratings with a Positive Outlook:

 

LVLT:

 

--IDR to 'B' from 'B-';

 

--Senior unsecured notes to 'B-/RR5 from 'CCC/RR5'.

 

Level 3 Financing, Inc.:

 

--IDR to 'B' from 'B-';

 

--Senior secured term loan to 'BB/RR1' from 'BB-/RR1';

 

--Senior unsecured notes to 'BB-/RR2' from 'B+/RR2'.

 

Fitch has assigned the following ratings with a Positive Outlook:

 

Level 3 Financing, Inc.:

 

--Senior unsecured notes due 2019 'BB-/RR2'.

 

 

 

[Santayana]

What a bizarre morning of trading on LVLT.  Looks like someone wanted to get out of a short in a hurry.

[Guest ValueCarl]

One of the greatest technology cult leaders and geniuses who ever lived, has now left us. He beat the cancer a bit longer than I would have anticipated, a testament to his strength and will to live.

 

From a selfish perspective, I am hopeful that he left explicit instructions to ensure that his executive management team "outsources" their ultimate t.v. solution to the Level 3 Network at God's speed.

 

http://www.huffingtonpost.com/2011/10/05/steve-jobs-dead_n_997223.html

 

Steve Jobs, Apple co-founder and former CEO, has died at the age of 56.

 

Apple has posted this statement on its website:

 

Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.

If you would like to share your thoughts, memories, and condolences, please email rememberingsteve@apple.com

[Guest ValueCarl]

When one genius leaves us, there are others to take his place in all facets of life. Mohnish Pabrai may be one. Any man who carries around a 180 IQ should not be ignored even though Mohnish has not avoided bouts of hardship for his shareholders during certain periods. Warren Buffett has dismissed high IQ's in the investment game during his lifetime, but maybe that's just his way of bringing rubes to the table. Anyone who has tried to get their heads around the multiple factors and extensive work including understanding the moving parts of a balance sheet, knows differently. A high IQ may not be as wasteful as Warren Buffett thinks. 

 

It seems that this sage has spoken about the merits behind Level 3, as a follow up to Charles T. Munger's "too hard to figure" comment to me recently.

 

The problem with this commentary is that I was not there to hear it in his own words, nor see it in his own eyes. The feedback that I have been receiving, on the other hand, has been with "mixed signals." So much to the extent, that I feel l like a character from the old t.v. series, "F TROOP," reading Indian "smoke signals" the wrong way, and setting my troops up for a disaster!

 

 

Do any attendees want to set the record straight on what this genius Mohnish Pabrai is saying about any portions of the (3) balance sheet today?

 

"Mr. Market" is using his name to talk to us again. 

 

http://seekingalpha.com/article/297904-tracking-stocks-in-mohnish-pabrai-s-investment-funds-part-ii?source=yahoo       

[Guest ValueCarl]

Two dollars pps for something that's worth $3-$3.60 pps as soon as the numbers were melded together on Tuesday? That's dirt cheap, and hardly generous! Let's hope that the move up to the NYSE and subsequent report for (3) period ending September 30 th, which should follow shortly afterwards, gets us there. I hope that SOON IT's finance crew has their house in order, and will be reporting SOON ER rather than later, i.e., no Global Crossing merger excuses extending our report into November. Neel Dev can handle it!  Level 3 owners have waited too long to see their factual growth from this STOREY. Let's get on with it!   

[Guest ValueCarl]

Seems like we have a lemming brigade of analysts all lined up conveniently as if they have even coordinated, at the $1.70-$1.80 lines of demarcation. Global investors from home and abroad will now be able to free us from the bondage these buffoons are establishing, quite frankly, dictating around "value."

 

I want to see lemmings falling off of cliffs as Lazarus is raised from "The Walking Dead."  >:( 

 

 

Netflix to get AMC's 'Walking Dead' show      10/07 06:24 AM

 

 

 

NEW YORK (MarketWatch) -- Neflix Inc. said it will offer exclusive viewing of prior seasons of the AMC Networks Inc. TV show "The Walking Dead" starting Friday. Future seasons of the TV show as well as other AMC and Sundance Channel programming will be streamed to Netflix (NFLX:$120.73,00$-2.51,00-2.04%) customers just prior to the debut of new seasons. Terms of the content licensing deal were not disclosed. Neflix also licensed non-exclusive rights to select scripted and unscripted TV shows.