First Plane Trip + Bull Market = Happy Jorge

Calendar July 14, 2007 | Posted by Jorge

Just returned from my conference in Portland, OR from Gainesville, FL. A long trip to say the least. Flying’s an acquired taste, I suppose. I did manage to catch market updates along the way. The week started off poorly in terms of the market. The 160+ down day Tuesday I believe wasn’t what I wanted to see landing in PDX. However, down days give you a great time to jump into the market. Wednesday morning I managed to sneak in 30 shares of LVLT as a result of the down day @$6.00. LVLT’s my speculative/tech play. Jim Cramer from CNBC’s Mad Money feels that we’re ripe for tech plays. So as my first stock in my revamped portfolio, I’ve decided to take a position in LVLT, Level 3 Communications.

From my Stockpickr wishlist:

LVLT (Level 3 Comm Inc)

Can’t have enough bandwidth with YouTube growing at 7% per day, right Master Cramer?

*Speculative Play*

Sector: Services

Industry: Communication Services

From TheStreet.com’s Company Profile:

 

Theory behind LVLT:

I don’t think we can ever have enough bandwidth. LVLT recently landed a contract with the US Library of Congress for bandwidth services. YouTube’s also growing at a rate of about 7% per day. With the increase in movie and music downloads, bandwidth expansion’s going to have to come from somewhere. That’s where LVLT comes in.

Disclaimer: Remember, I’m just a college student learning the market for the first time. I’m not a professional. In fact, I’m not even a business major. Before you invest, do your research first. Beware of the risks of investing! You can learn a valuable lesson!

Category Categories: Equities | Tag Tags: | Comments Comments

  • I have a personal bias against the telecom companies just because I've had such a horrible experience with their wireless departments. Emotions should be checked at the door when it comes to investing and if I could do that I'd probably invest in AT&T; in the short run as the iPhone picks up steam. In terms of LVLT and the bandwidth issue, I'm only looking for more of a short term outlook. Once LVLT hits the $7 mark I'll probably retreat into a more stable growth position such as Google, although at the rate Google's going it'll hit $700+ in no time.

  • Nice insight. Bandwidth, like storage, will never be enough. But the only question is will it increase faster than the shrinking margins due to competition and technology. There is a reason why 2 GB of flash cost the same as 128 MB did two years ago... the profit remain the same.

    I write about investing too over at Ask Jason Business. My current pick is AT&T.; The iPhone is going to help them for at least two years.

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