Shares in Level 3 (LVLT) won’t stop falling. The stock is down almost 25% in the last six moths with most of that slide coming since early July.
LVLT seems to be in a great business. It provide a huge highway for the delivery of internet data, video, and voice. In the last reported quarter, LVLT revenue moved from $819 million to $1.035 billion. The company’s net loss was flat at just over $200 million. Acquisitions played a part in the revenue improvement.
What Level 3 has that Wall St. does not like is boat loads of high yield debt, over $.6.8 billion. And, the company is not exactly throwing off a lot of cash.
High yield debt was in favor until a couple of months ago, but that has changed considerably. Even relatively attractive private equity deals are having immense problems getting funded. That makes the market cast a jaundiced eye toward a company like Level 3.
If earnings and cash flow are not good in the current quarter, LVLT could end up with very few supporters.
Douglas A. McIntyre
Are You Ahead, or Behind on Retirement?
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?
Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes.
Why wait? Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.