Level 3 Hits 52-Week Low As Wall St. Ponders Telecom

Telecom & Wireless

Published: September 13, 2007 1:04 pm

Last Updated: March 27, 2020 1:18 am

24/7 Wall St. mentioned a few days ago that Level 3 (LVLT) has traded off sharply this year, probably due to its huge level of junk debt. The company has been able to push out the maturity date on some of the debt, but LVLT is still struggling with cash flow. The shares hit a new 52-week low today trading at $4.41, down from their 52-week high of $6.80.

The Alcatel-Lucent (ALU) debacle has Wall St. taking a look across the entire telecom and telecom equipment sector. Another weak player, Nortel (NT), is taking a beating. Motorola (MOT), which has a large telecom equipment division, is also off.

On the other hand, the companies that own the phone systems and have ALU, MOT, and NT as suppliers are up. AT&T (T) and Verizon (VZ) are both up about 2%. Both trade very near 52-week highs.

Looking at the landscape, investors appear to be saying that in telecom equipment, it is better to be a buyer of equipment than a seller, it is better to have the consumer and not the enterprise as a customer, and it is best to stay away from segments of the industry that are becoming commodities.

Douglas A. McIntyre

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.