LEVEL 3 (LVLT)

[LVLT]

Level 3's got the clear path. The fact that it can print stock and the bondholders will take it with this new deal tells me that we are in a moment where this stock could move to $8 or $9, and estimates will have to go up big because there will be such an opportunity for bondholders to exchange stock. If you want to see where Level 3's money goes, just hit up the list of bonds that this sucker has issued and the high coupon of all of that debt. Now, imagine a half-dozen more deals like this and you'll realize you could see cash-flow positive numbers as soon as this year. Given that this has been the bear case, and they're all keying on the balance sheet, you can see why this stock could be at the beginning of a ramp. I wouldn't care less about the company...