In the past three days, Dan Caruso's BearOnBusiness, Ike Elliott's Telecosm, and Nyquist Capital's blog have not only linked to this blog, but have posted about it. I must say, the welcome wagon isn't sleeping on the job, this page has only been around for a few days now! Let me say that I read Telecosm and BearOnBusiness religiously and I have found them to be fantastic commentary on the telecom sector, in fact their presence is part of what inspired me to toss my own hat into the ring. I have run into Nyquist Capital many times as well, and have now added them to my daily reading list. Thanks guys! I'll do my best to live up to the billing.
May 13th, 2008
This is another in a series of modeling and compiled information posts, which I intend to update over time and refer to in posts.
Because LVLT's debt is a major (if not all-encompassing) feature of its balance sheet, and because so many financial moves the company makes relate to its structure, it is worth keeping track of in some detail.
May 12th, 2008
The media tends to portray the CLEC strategy as monolithic, each player has a certain amount of fiber and leases the rest via special access from the ILEC. But it is quite interesting just how wide ranging the various strategies out there are.
May 10th, 2008
The virtuous circle awaits Level 3, if they can only stop tripping over their own feet and get there. A virtuous circle is a pattern that reinforces itself in a feedback loop. If Level 3 can generate positive cashflow, then their stock will go above the strike price of some of their convertible debt and they can force or induce an early conversion. The interest saved then increases their cashflow, raises the stock further, and more converts can be eliminated, and so on up the ladder. So where are the rungs on this ladder? They are spaced out over the next 27 months. [Read more →]
May 7th, 2008
As my inaugural post, I am providing my detailed model of LVLT revenues, costs, earnings, and cashflow. It is a multi-page spreadsheet, and is more comprehensive than anything I find in analyst reports etc. I don't claim perfection, if you find an error or have a suggestion for improvement please let me know.
My model allows the study of each business unit independently, calculating the total gross margin from the individual components. For historical data, I work backwards from the actual results using various assumptions in order to give a consistent context to the same numbers going forward. [Read more →]