LEVEL 3 (LVLT)

[eddy2]

Took my short position and sold waiting now to buy cheap shares as outstanding shares climb to buy back on the cheap paying interest on money borrowed to buy the short position and selling the short position to pay the interest owed using the remaining cash to buy this or other shares on a rise to pay the principal.


This is done by leverage as well as using a derivative on the largest spread giving you the cheapest entry point on the borrowed shares.



The shares go up your forced to use your leverage capital and will have to scramble to shore up more collateral by taking on another short position. The trick is to watch the outstanding shares as well as the debt rise once this turns get out and go long. the market is slow to react if the general market is all doing the same thing in a bear situation.


This stock will fall it is just a mater of time here due to debt and the rise of outstanding shares.


Revenue has gone up but revenue/share has gone down as well debt has gone up forcing equity investment up as well as retained earnings up due to the selling of additional shares into the market place this will change as the company buys back shares and the retained earnings becomes a negative number " MORE GOING OUT THEN IN" granted because they are buying back shares below the strike price set and due too the debt not being paid down the share price value is going to rise s far as the new strike price is concerned as new shares are introduced into the market place.