Broadwing - BWNG is trading at very low levels in our opinion with a value of around $900 million for a company that currently owns an estimated $5.5B fiber optic network and strong global partnerships. They have over $350 million in cash and a LOC to draw from and have yet to disclose what the money is to be used for.
Our guess is that a Buyout is still imminent from the likes of someone like Global Crossing - GLBC or another company interested in expanding their optical reach. News of a CEO has to be forthcoming as well unless they are acquired soon and a company like Global Crossing will use their CEO if and when acquired.
This company is far too cheap to be trading below $10.25 in our opinion. Something must be in the works. Last time we checked, we were still in a mini-telcom merger mania environment, so we are very optimistic that Broadwing will turn back to the upside without any notice.
