Opinion on  Level 3 Communications Inc (LVLT)     Sector: Services  >  Industry: Communications Services
LVLT ready to move up a few levels

LVLT basically spent the last few years when debt was cheap borrowing money to lay broadband cables all over the place in order to take advantage of the growth in digital media.  With the onset of streaming media and digital video about to take control, they are a leveraged play on something that is inevitable - the emergence of the computer as the home entertainment center and the internet as its gateway.  

Due to its leverage and lack of earnings many people have been hesitant to own such a stock.  As they turn profitable (as I believe they will in the upcoming quarters) much of this perceived risk will disappear, and so too will the discount it is currently trading at.  I believe by this time next year, this stock will be at least $10 a share - regardless of what the market does.  Even during an economic slowdown, as long as the leverage does not overwhelm them, the product that they sell will still be used as entertainment is pretty much recession proof.