(Level 3) still has a few more quarters before building sales momentum, but it's not going to go bankrupt - not right away at least. I think they're OK for a few years.
I think there still were some hoping that BellSouth and Qwest would come together, so this takes away a possible merger partner for Qwest.
All that could be pulled into the West umbrella.
They're continuing to show stable revenues and to reap the benefits of the cost-cutting they did last year.
People involved in the day-to-day, they often miss turning points. They get beaten down after so many years. Or they're burned out. They may have stock options but don't believe they're going to be valuable.
The one thing that Qwest has is its local franchise, and over the next two years it's going to become increasingly embattled as (cable company) Comcast starts rolling out more aggressively with their digital voice service. I don't think they get acquired at all.
It's so rare for anything in the telecom sector to show any kind of growth, but they're taking it away from AT&T and MCI and the Baby Bells.
Qwest is definitely the orphan Bell. I really don't see Qwest as an attractive acquisition target for several years.
It will be interesting to see how they finesse that.
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