LVLT - Sector: Technology---Industry: Diversified Communication Services

[Miguel007]

LVLT has broken out of a Bull Flag pennant setup with huge volume closing at 6.02$ 52 week high, I can say LVLT is on FIRE !!! In the daily chart we can see that Bullish MACD crossover, so keep it on your watchlist. Remenber " the trend is your friend until it ends ".

[setravis]

Monster volume....

52wk Range: 2.06 - 6.00

Volume: 165,044,613
Avg Vol (3m): 28,611,600

Technicals
Record Price High
Most Actives
Record Price Break Out
Percentage Gainer

Last Price Quote is:
16.43%above 13-day MA
26.04%above 50-day MA
RS Rating: 96 

Fundamentals
Earnings Expected on Oct 24

Key Data:
Market Cap (M): $6,052.09 
P/E Ratio: NA 
PEG Ratio: -0.578571 
Next Earnings: 10/19/2006
Last Analyst Rating: Buy


This stock has a thread....here it is !
Why create new ones.....Clutters the boards.

Miguel007, you created a thread on 15 July 2006,and then you create a new one today 
Use the search to find a thread on a stock pick.

[setravis]

Look go here.....

http://www.3stocksonfire.org/trading/index.php?topic=169.msg74327#msg74327

[setravis]

AP
Level 3 to Acquire Broadwing for $1.4B
Tuesday October 17, 5:10 pm ET
By Sandy Shore, AP Business Writer 
Network Operator Level 3 to Buy Broadwing in $1.4 Billion Deal


DENVER (AP) -- Network operator Level 3 Communications Inc. took another step in its transformation Tuesday by announcing a $1.4 billion cash-and-stock deal to acquire Broadwing Corp., which sells communications services.


If the acquisition is finalized, Broadwing will become the latest of a string of companies Level 3 has acquired as part of its strategy to offer service from one locale to another without relying on -- or paying -- a third party for part of the transmission.

The acquisition will enable Level 3 to put Broadwing's customers on its network and eliminate duplication, Level 3 President and Chief Operating Officer Kevin O'Hara told The Associated Press.

"We're going start to finish and every incremental dollar of traffic that we can put on network, we get to keep a bigger and bigger piece of it as a result of the financial leverage," he said.

Investors joined analysts in welcoming the decision, driving Level 3's stock to a 52-week high and Broadwing's stock up nearly 20 percent.

"We believe this acquisition further consolidates supply in the long-haul market and will help in further stabilizing industry pricing," JP Morgan analyst Jonathan Chaplin said in a research note.

Janco Partners analyst Donna Jaegers said Level 3 would gain more business customers and a nationwide sales force. "I think it's a good fit," she said, adding that any risk would primarily be in the integration of operations.

Level 3 agreed to pay $744 million in cash and issue 122 million shares, which will translate to $8.18 a share in cash and 1.3411 shares for each share of Broadwing. The offer represented a 15 percent premium over Broadwing's closing price of $13.28 a share on Monday.

The deal is expected to close in the first quarter of 2007 pending approval by regulators and Broadwing shareholders. O'Hara said no decisions have been made on potential layoffs that may occur as Broadwing is folded into Level 3's operations.

Level 3 expects to spend between $110 million and $130 million to combine the companies and that Broadwing's operations should start contributing to adjusted operating income next year.

Based in the north Denver suburb of Broomfield, Level 3 offers Internet communications services over its 23,000-mile broadband fiber optic network. The industry leaders are such companies as Verizon and SBC while Level 3 fits into a group of smaller competitors such as Qwest Communications International Inc.

"Level 3 starts to look very attractive in that next tier," O'Hara said. "But, to be fair, we're still a small player compared to the behemoths."

As managed modem and DSL businesses waned, Level 3 acquired a handful of companies that have boosted network traffic. Among its customers today are Hershey Foods, Pennsylvania State University and the commonwealth of Pennsylvania.

"Going forward, Level 3 has really changed its stripes," Jaegers said. "Now they're realizing they have to go after more small and mid-sized customers."

Based in Austin, Texas, Broadwing sells data, voice, and media products and services to business and other service providers over a 19,000-mile intercity fiber network.

Level 3's stock closed up 72 cents, or 13.5 percent, to $6.04 a share on the Nasdaq Stock Market. In the past year, it has traded between $2.06 a share and $6 a share.

Broadwing's stock rose $2.62 a share, or 19.7 percent, to $15.90 a share, on the Nasdaq. It has swung between $4.99 a share and $16.44 a share in the past year.

Level 3: http://www.level3.com

Broadwing: http://www.broadwing.com

[Holygrale]

Chart looking good...............for a big tall white candle.

[Holygrale]

Any news or volume and were off to the races..........

[Holygrale]

Cant post chart right now, but it sure look good...............

[Holygrale]

Well heres a chart, 50 million in volume helps............

[Melf Elf]

Chart looking good...............for a big tall white candle.

Holygrale,

Pretty chart!  Applause for your posts.  I'm a day late reading them, darn it. 

The 34/55RSIs have given 3 consecutive Buy Signals here at 5.46...5.38...5.46 while LVLT has been finding support at the up trendline off the August low (blue trendline).

I coulda had this yesterday morning for the 5.38. 

Coulda...Shoulda...Woulda...   

"THE PERFECT BUY" (if there is such a thing  ) was in the Right Shoulder of the Inverse H&S, just prior to the nice breakout.  The 34/55RSIs gave a Buy Signal at 4.22.  LVLT also was finding support at its 50DMA.

The Inverse H&S Target of 5.60 MADE within four cents at the 5.56 high of the Symmetrical Triangle (Green #1).

The Symmetrical Triangle broke out (another nice buy) and that target of 6.12 MADE within three cents on October 17 on the announcement of the acquisition of BWNG.  The high was 6.09.

Two good examples of how we can't expect exactitude from targets.  But, they were darned close, and the 5.60 eventually MADE on the run-up to 6.09.

If I had gotten LVLT at 5.38 yesterday morning, my stop would be 5.11, below the first green arrow, when the first 34/55 RSI Buy Signal was issued.  I wouldn't insist that the blue up trendline hold.  Sometimes stocks establish a new up trendline that is less severe in its upward slope.

The risk would have been a loss of 5%.

The expectation on the trade would be at least a re-test of the 6.09 high, for a gain of 13.2%.

Risk:reward would have been 1:2½, roughly.

I'll have to play with the risk:reward numbers here, but I like this chart.

I'll show you the 34/55RSI chart next.

By the way, thanks for answering my question in the FORD folder.  Another applause, but I have to wait an hour to give it to you, or I'll get bad Karma, or some such thing.    

The FORD chart has me stumped, so I haven't done anything with it.

[Melf Elf]

34/55RSI Buy Signals

[Melf Elf]

I'll have to play with the risk:reward numbers here, but I like this chart.

Holygrale,

I ended up buying LVLT for 5.59, well above what I wanted to pay!   

I placed an order before the market, at 5.48.  They didn't fill it.  The low was 5.50.

I decided to go ahead and "pay up" because the chart looks so strong, and put my stop below 5.35, which was the low, prior to this second run-up to the neckline. 

EDIT: Risk is a loss of 4.5%.  Reward if we get 6.09-6.12 target IN PLAY: 8.9%, for roughly a 1:2 risk:reward.

This morning's low was a successful re-test of the down trendline, and also looks to be the bottom of a Right Shoulder, of a Bullish Inverse H&S, which contributed strongly to my being willing to "pay up" for the stock. 

The neckline is 5.72-5.68.  We need to take that out to the upside.

Good luck!

[Holygrale]

Melf......

"By the way, thanks for answering my question in the FORD folder.  Another applause, but I have to wait an hour to give it to you, or I'll get bad Karma, or some such thing.     

The FORD chart has me stumped, so I haven't done anything with it".--- No worries on the reply, was hoping she would gain some momentum but I'm on the sidelines on FORD for now.........

In the meantime, LVLT has treated me well the past few weeks, I see more upside on this one. Nice analysis your doing on it by the way.

Hey take a look at AUY for the gold play, been in since 8.50 but I also day trade it for 5k shares at a time along with core position, talk about predictability............nice and steady.

Keep it going!

[Melf Elf]

No worries on the reply, was hoping she would gain some momentum but I'm on the sidelines on FORD for now.........

Holygrale,

I was hoping so, too, but the chart does nothing for me. 

setravis and I were trying to figure out what appears to be a very low P/E, but I don't know if it's accurate or not.  There's a big disparity between that analyst saying "must own," and how badly FORD has responded to disappointing earnings.

In the meantime, LVLT has treated me well the past few weeks,

Great!

I see more upside on this one. Nice analysis your doing on it by the way.

Thanks.  I have a late entry into the stock, at 5.59, so I might get nailed on my 5.34 stop. I was disappointed that LVLT couldn't get going on the upside yesterday, given the nice patterns on the charts, but it held up in yesterday's down market, so we'll see.

I'm a bit concerned about a possible Bear Flag resolution in the LVLT daily chart.  I'll post that next.

Hey take a look at AUY for the gold play, been in since 8.50 but I also day trade it for 5k shares at a time along with core position, talk about predictability............nice and steady.

Keep it going!

I've been in GG.  Sold it yesterday.  I'll post you on it in that folder.

[Melf Elf]

Holygrale,

Hopefully, the current pattern is a Bullish Ascending Triangle, with the highs both at 5.72.

Alternatively, it could be a Bear Flag (pattern in red), and the two upside targets that got MADE could be all that we're getting on the upside. 

Both the blue up trendline and the up trendline of the "possible" Bear Flag came in yesterday at about 5.35, so I'll take a loss if we print 5.34.

[Melf Elf]

I ended up buying LVLT for 5.59, well above what I wanted to pay!    

I placed an order before the market, at 5.48.  They didn't fill it.  The low was 5.50.

EDIT: Risk is a loss of 4.5%.  Reward if we get 6.09-6.12 target IN PLAY: 8.9%, for roughly a 1:2 risk:reward.

Sold LVLT at 5.34.  Loss: 4.5%.

I made THREE mistakes on this trades:

1. I paid more than I wanted to pay, rather than wait for my 5.48 price, which I would have gotten.

2. I "should have" stopped out yesterday's close of 5.44, which was a break of the trendline in the daily chart (see last post).

3. I was blinding "trading the plan," which we normally should do, but in this case, that break of the trendline required an adjustment to the plan.  I was late to the trade, paying 5.59, and I "hoped" that the trendline break on a closing basis DIDN'T MEAN ANYTHING!!

Duh-h-h-h...     Where's that Embarrassd Face?  > > > 

If I had not made those THREE mistakes, my loss would have been 4.48-4.44:  only 0.9%

There is support at the 50DMA, at 5.25, and horizontal support at the last low of 5.12, so LVLT still could rally off one of those.  That trendline break at yesterday's close, though, likely will keep me from re-entering.