1) What did that sophisticated guinea from Da Bronx, and with cream coming out of the corners of his mouth, say about our Big (3) yesterday?
I don't know what Mario Gabelli said about LVLT. I only read what was at Guru Focus and that was identical to his 3Q report. But seeing him foaming at the mouth about Level 3's future free cash flows, is a good indicator that he intends to buy more of this under valued business. After all he has the title of being the value investor of value investors.
2) We all know that Crowe Blow put an "end of business" value on Level 3 many years back when he keynoted Dan Rayburn's CDN conference and kissed WS' behind very prematurely considering the destruction of the biz during that period, and while referencing the sale of HOLOGRAMS, once again, as it was real and ready to go for a price that nobody would pay!
The only thing I know about valuing a business, is does any value investor (listed at Datraroma) own shares of the business. Then I find out their entry price and current cost basis. That reveals to me that the business is worth at least twice as much as the market price. If I can buy shares close to their cost or below then that makes me pull the buy trigger. Of course if the business has good management and a past high ROIC (like IBM for example) it's a bonus. In the case of LVLT my simple analysis says the company is still at least a 50 cent dollar. So I hold, seeking Mr. Market's someday recognition of fair value.
With this in mind, what does the BALD ASS and his minion like Staley value the terminal value of all the fiber in Level 3's entire number of conduits to be?????????????????
I'd have to guess at least another $50 per share on top of the current discount for the business, which in my opinion is easily worth $100 in replacement value. So, add in the dark fiber empty conduit assets and your looking at a rough ballpark estimate of around $150. But the $100 pps is all of a margin of safety I need, at today's approximate market price of $50, to continue holding. I'm satisfied with just holding 50 cent dollars and leave it at that.