Volume Spike Investor

Level 3 Communications Inc. (NASDAQ: LVLT) is rather active in pre-market trading.  The company’s stock was cut to “Underperform” at Oppenheimer this morning along with a couple other communications carriers.  As of 8:55 this has traded over 150,00 shares and the stock is down nearly 5% at $3.23.  What is surprising more than the drop and more than the call is that the volume isn’t already up in the “millions” as this trades about 25 million shares per day and is a key day trader and low-price trader stock.  The 52-week trading range is $1.68 to $5.38.  This also takes the stock to key technical levels as the 50-day moving average is $3.30 and the 200-day moving average is $2.95.

Jon C. Ogg
August 13, 2008