LEVEL 3 (LVLT)

[NewMoney]

October 9, 2006
Level 3: Google's Next Acquisition Target?
In a previous blog post Level 3 Communications Inc. (Nasdaq: LVLT) shares were near technical collapse, but the chart has improved much since then after we predicted a positive reversal in progress.

Now, Level 3 is substantially higher right out of the gate in this morning's trading session. Rumors circulating Wall Street indicate that Level 3 could be Google Inc.'s (Nasdaq: GOOG) next acquisition target. The speculation comes after the Wall Street Journal reported that Google is in talks to buy the popular video sharing website YouTube, which now servers over 100 million videos per day, for approximately $1.6 billion. Some investors believe that Level 3, which was hired by YouTube last month to provide high speed access and data center connection services, could be a perfect technology fit for Google to meet its other connectivity needs through Level 3's fiber optic network. Level 3 shares are up $.19, or 3.69% to $5.34 on more than half of its daily average volume traded within two hours of the trading session. The stock is now hovering near tough $5.50 resistance, but a breakout on momentum from a potential Google offer could enable shares to sail clearly to its 52-week high of $6.00.