Level 3's Story Is Still Good

This column was originally published on RealMoney on Feb. 9 at 10:37 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Sometimes you get a stock that runs so much that people sell it even if they know the story is good. Other times, people sell it without even bothering to find out if the story is still good.

That's how I felt about the darned Level 3(LVLT Quote) earnings conference call Thursday. Level 3 had a very good quarter with lots of good things happening, including lots of solid integration of disparate deals put together to extend the terrific franchise that is going to be THE on-line video company.

Of course, the losses are substantial. No kidding. That was forecast. But what's missing is that the interest rate environment is so good that Level 3 can refinance almost everything that it can and fix this balance sheet in a form that will change everything for the better. ...