LVLT will acquire GLBC. 16 shares of LVLT will be exchanged for one share of GLBC.
Our analysis shows that this acquisition is positive for LVLT and we expect LVLT to trade higher. LVLT is a deep value play. The firm is positioned well to benefit from the anticipated exponential increase in internet traffic.
The problem with this company has been the oversupply of fiber and the resulting pressure on bandwidth pricing. However, with the increase in internet traffic, we believe the over supply of bandwidth will begin to evaporate.
The Quantitative Analysis Screen of the ZYX Change Method shows fair value to be $2.25 and our target is $3.00.
At present, three of the six screens are positive. The other three screens are neutral. We expect more screens to turn positive on any pull back in price. When this happens we will issue an alert signal. Venturesome investors may consider scaling in lightly on any pull backs prior to the alert.
In ZYX Buy Change Alert, we will provide the entry zone on pull back, the stop zone and the target zone as well as follow up on the trade from cradle to grave.
