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Author: Ttypo Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21992  
Subject: Re: Lets get it out of our system and post our l Date: 10/23/2001 2:44 PM
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1) Buffet Buying Bonds.
Who cares if Buffet bought bonds or not? Not material to the value of the company.

2) Kiewit taking LVLT private.
First of all, 'Kiewit' doesn't own one share of LVLT. Many current and ex-Kiewit employees do (I'm one). The only way this company would be taken private is if it creates the most value for the stockholders in which case we would be glad it happened. Probably not going to happen though.

3) Banks wanting to sell back bonds to LVLT for pennies on the dollar will not hurt LVLT credit rating.
Buying bonds back for pennies on the dollar is a very good thing IF you can afford it. Apparently, LVLT can afford to do some of it. Lowering debt is a very good thing. To take it to an extreme, if LVLT bought back ALL of its debt for pennies on the dollar, while continuing to grow the company and become self-sustaining, the banks would line up to lend more money if needed for capital expansion.

4) Jim Crowe is the world greatest CEO.
Don't know about worlds greatest but he is probably one of the most knowledgeable and ethical in the business. Between those factors and having stockholder value as his number one concern, that's good enough for me.

5) Thank God LVLT did not request competative bids for construction.
Give me a break. This startup company (LVLT) was created by Kiewit. Who do you think should do the construction? Plus, it really is highly doubtful it could have been built as quickly or efficiently by getting competitive bids. Lastly, whether or not LVLT paid too much for the construction of it's network by not getting competitive bids is immaterial to the long term price of the stock.

6) The lay-offs of 33% of their labor force has no meaning towards future growth.
Mostly true. An argument could be made that not having enough employees could have cost them some business but overall, the layoffs were a result of a lack of growth, not the other way around. Most of us believe this is related more to the overall economy and dot-com bust rather than any fundamental flaw in the business plan.

7) LVLT has always told the truth.
Again, mostly true. People being people I would hesitate to say it's 100% true but I think they've told the truth, as they see it at the time, more than most other companies. Of course their vision into the future is not 100% accurate. Wouldn't expect it to be. But as they've recognized changes and changed conditions, they have reacted appropriately to make the most of them.

8) Crowe's 11th hour sale to Scott was a good sign for things to come.
I don't think it has much impact on what is to come. It is a pretty good indication of Scott's confidence in the company and probably a pretty good solution to Crowe's conundrum he found himself in.

9) Secerate customers
I assume you mean secret customers. Crowe has stated on many occasions that not all of LVLT's customers want us to announce the fact that they are customers or announce the degree to which they are customers. He respects their wishes and I respect him for it. As he has stated many times, "keep your eye on the revenues". I guess we'll see how things are going this Thursday.

10)Short squeeze
IF the company starts posting some better than expected numbers, it seems almost inevitable. Could be exciting but really has no effect on the long term price (and value) of this stock.

11) There is no need to write down assets. We can say they are worth whatever we want them to be
I'm not much of an accountant so I don't really understand what effect this has one way or another. I do know that these guys, in general, are going to take the most conservative approach to all accounting issues with an eye towards minimizing taxes paid and maximizing value for the stockholders.

12)LVLT is an employee own company
Obviously not true. I suspect you're referring to the unusual stock incentive program which has been implemented. As a non-employee stockholder, I am very happy to see stock option rewards based on stock price performance. Certainly, due to the volatility of the stock, the program has not worked as anticipated so far. This is very unfortunate for those employees who gave their heart and soul to building the company and will not see any extra benefit from it. On the other hand, once the company is on more steady ground and growing as it should, the reward will be tremendous for those employees who are in the program for the long term.

13) Never mind Susan Kalla. She knows nothing, just lucky.
"Even a blind squirrel finds an acorn now and then." Seriously, I really only started following the stock market 6 years ago when I retired from Kiewit. Before that I didn't need to 'cause Kiewit had all of my investment money. In that time, it has never ceased to amaze me how many talking heads are good at pumping up a stock when it is high and dissing it when it is low. It is also amazing how many of them are heralded as the next greatest thing when they happen to make a few lucky calls and yet no mention is made of all their mistakes prior to that time or the fact that two years from now no one will know their name.

14) I'm not wrong, the market is.
I was definitely wrong not to sell every share I owned when LVLT was in the 100's (or 90's, 80's....). The market was definitely wrong to ever value this company at 130 at such an early stage and is definitely wrong to value it at 3 now. However, both numbers are completely understandable. So far, this company has not made a dime. Therefore, any price you attribute to it at this point in time has to be based on a lot of assumptions. As we all found out over the last two years, assumptions can be very wrong. This is a high risk/high reward stock. If you believe the plan is good, and if the company does not go broke, and if they start making money, and if they start demonstrating good growth, at these prices the rewards will be amazing. There's a lot of 'ifs' there. I am comfortable that they will all happen.

15) I love working for Jim Crowe
Never worked for him so I can't really comment. I do however love hearing him talk about the business and his vision. Between his vision, engineering skills and knowledge, and Scotts business skills, it would be very unlikely for this company to not succeed.

Bottom line is that this stock will be fairly valued when it becomes overwhelmingly evident that the company will survive, grow, and make money. Having now finished this post and looked at your profile, I'm not sure why I even bothered responding. It certainly isn't for your benefit. My 'pumping' and your bashing will have zero effect on the price of the stock.

Back to lurk mode....
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