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!
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.<br/><br/>I write about investing too over at <a HREF=”http://askjasonbusiness.blogspot.com/” REL=”nofollow”>Ask Jason Business</a>. My current pick is AT&T. The iPhone is going to help them for at least two years.
Comment by jasonj — Sunday, July 15, 2007 @ 6:47 pm
<p>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.</p>
Comment by Jorge — Sunday, July 15, 2007 @ 10:04 pm