Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of backbone network provider Level 3 Communications (NAS: LVLT) lost signal today, opening up 12.8% below last Friday's closing and then climbing back to a smaller 7% drop.
So what: The proposed merger with Global Crossing (NAS: GLBC) was approved by shareholders on both sides on Friday. The relative climb back to respectable price levels while facing a sour market day comes on news of an attractively structured $650 million loan to help finance the deal.
Now what: Approved mergers are usually seen as good news, unless some cohort of traders was hoping for a big "no" and then a better deal. I'm not a huge fan of Level 3 shares in general, but the stock looks fairly attractive at these low prices. If you think that Level 3 is headed for the great gig in the sky, by all means stay away -- otherwise, digging deeper into the company looks like a smart move.
Interested in more info onLevel 3 Communications? Add it to your watchlist.
At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.
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