Level 3 Will Ride Virtuous Cycle

This column was originally published on RealMoney on Jan. 8 at 8:43 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

We haven't had a stock with the virtuous circle going for it in a long time. Don't know what that is? It happens when a stock goes higher; as it goes higher, it solves a lot of the balance sheet problems that would otherwise haunt it.

That stock is Level 3(LVLT Quote).

I know I have repeated myself often about Level 3. I think I have to, though. The stock is not well-liked, not because of its products or strategy -- I don't know anyone who thinks that ultimately a company that has spare bandwidth and programs to manage the onslaught of online video is a bad buy. Especially when it is run by a seasoned survivor of the telco wars, Jim Crowe. ...