Volume Spike Investor

Level 3 Communications (NASDAQ: LVLT) is likely to see some added selling pressure on Monday morning.  The culprit is a downgrade out of Citigroup, but the severity of the call may turn some heads.  Level 3 was already covered with a HOLD rating, but the new call is a SELL rating from the brokerage firm.  While this call may be late and after a significant downward move, this is looking like it will add pressure to an already weak stock this Monday morning.  So far the trading volume appears to be extremely light in the stock, but that may be because we still have 2 hours to go before the open.  At 7:30 AM EST we have only seen a few hundred shares trade hands, but the indications are putting the stock down about 5% around $2.95 in early-bird trading.

FRIDAY CLOSE:   $3.12
52-Week Range:  $1.68 to $6.42
Avg. Volume:    23.5 million shares
Market Cap:     $4.84 Billion

Level 3 Communications was also just reviewed as a newsletter pick in the weekly “10 Stocks Under $10″ newsletter from 247WallSt.com after its recent weakness.

Jon Ogg
June 30, 2008