I want the boards feedback on this swag
There have been three times in the last 15 years where I have made money trading this stock(lvlt) based on what I am going to post next. The trigger to the trade was the bonds rallied very strongly and the stock didnt. This happened before with Wiltel, GLBC and TWTC. Each case it made sense that the bonds would rally as Investment banks bought the bonds that would get a credit upgrade. The IB's also knew that lvlt would be issuing stock to do this so the stock lagged until there was a deal.
SO today I have the bonds dropping 200 basis points in yield since the eps report and the stock is down 35% give or take. this wont last. if nothing changes the stock goes up OR THERE is other things happening on the M+A front. I dont see ctl issuing stock here but its possible. feel free to let me know what you think on who the hell they would be looking at.
HERE IS MY QUESTION FOR THE BOARD. IS IT POSSIBLE THAT CTL CAN BUY BACK ITS BONDS IN THE OPEN MARKET WITHOUT ANNOUNCING IT? this would explain whats happening without ctl buying somebody and issuing stocl. thanks for all input