Today We Saw A Major Move On Coal Shares

Lawyers For Delphi And Unions Say Talks Are Progressing

Crude Oil Rises as Saudi Arabia Says OPEC Cuts May Increase

Apple Is Poised To Rocket On News of Earnings!

Apple Profit Up 27 Pct., Beating Estimates - Expect Short Covering!

Level 3 to buy Broadwing for $1.4 billion

Arch Coal (ACI) Is Running Strong!

Hoping to see the $40 - $50 level soon enough when the MACD breaks through as seen on the weekly chart.
See Chart

Looks similar to what happened to Broadwing!
See Similar Breakout Chart

Time To Load Up On More Coal - ACI

Still accumulating Apple Computer as well.

Arch Coal Announces Stock Buy Back - Stock Surges

Apple Looks Strong Here

Good back to school sales and Christmas is just around the corner. The chart shows a long term cup and handle formation from May through the end of August, indicating higher stock prices from here.

The FED ...

The FED will soon realize that their relentless series of rate hikes have slammed on the breakes of our economy. Spending is slowing and just about every 10th house in most neighborhood seem to be on the market for sale!

Economy Grows at a 2.9 Percent Pace

Core inflation at the producer level fell unexpectedly during July

Go Figure? FED Action Trips Us Up Again

The market has rallied on good earnings reports and the likelihood that the FED would stop raising rates. Well, the FED halts a series of 2 years of ever increasing rate hikes and the market sells off on the news! Now, Wall Street will tell us that because the FED has paused on the rate hikes, this is not good since the economy may be slowing! That is...rising inflation in a slowing economy.....stagflation they will call it! What next??

Trinity Industries Could Run From Here

Looking at the chart, we feel that Trinity Industries - TRN cound run through $40 from these levels. It has been on a Buy signal since $35 and looks solid as it continues to move higher.

TRN Chart

Telecoms Have Made A Good Run

Q, TWTC, And BWNG are positioning themselves to benefit from the upcoming high demands of media services with home and enterprise customers in the future. We are seeing a slight pullback after digesting the recent run ups, but expect that higher stock prices will follow quarter after quarter as profits continue to improve.

AT&T Leads the Telecom Stocks Higher

Finally, the telecom pendulum has started swinging up as investors look for defensive characteristics by investing in the telecom industry, so expect positioning in this industry in the coming weeks.

Stocks Soar as Value Buyers Step In

Today Was Options Expiration Day

Therefore, many good stocks were pushed down to make several options expire worthless today or for less money after the good spike we had in the market the other day. Here's hoping that we have a run in the market next week. We need it!

Bernanke: Interest Rate Hikes May Be Over

Ben Bernanke Signals That Two-Year Campaign of Raising Interest Rates May Be Coming to an End. What does this teach us. Well, when all looks lost the markets usually turn around. Shorts will be covering on this news and drive many of our stocks back up to higher levels.

Dow Shoots Up 100 Points After Bernanke Comments

Seems that Uncle Ben feels that inflation may be under control now. This is a good sign for the bulls.

Qwest, Time Warner Telecom, and Broadwing Fidelity Filings

What Does Fidelity Know?

Qwest Filing

Time Warner Telecom Filing

Broadwing Filing

Stock Charts

BWNG Stock Chart

Broadwing Update Per Company Call Today

- Fidelity Mid Cap Fund files 12.6% holding today on EDGAR
- Broadwing has proforma 1st qtr cash of $348.2 million in the bank.
- They are looking at a variety of acquisitions to add customers
- There are both internal and external candidates for CEO under review
- Company was $2.3 M adjusted EBITDA positive last quarter
- Company has evolved from an equipment company (Corvas) to a service provider
- They bought an asset from Cinncinati Bell that costed $5B to build for approx. $71 M
- They purchased Focal to broaden their services to small and medium customers
- In 2004 the company raised money with a Toxic convertible that was not a good deal and should not be confused with the recent good convertible that actually sold at a premium to the market price with a conversion price of $16.60 around May.
- The new convertible has a 20 yr life and interest is only paid in cash and Not stock as many short sellers or panic sellers may believe (this is where some confusion arises with panic sellers who remember the deal they did in 2004)
- Because of the Focal acquisition they were able to sign a deal with AOL recently
- Also, because of their partnerships with AOL, HTX and GLBC they will have the ability to sell their services to others more easily and more credibly
- Broadwing is following through as planned with their strategic plan to achieve higher margins
- The goal now is to drive more traffic to the network and adding customer density to achieve higher margins

Telecom and AG Stocks Poised To Lead The Markets

Fidelity Mid Cap Fund Positions itself with several telecom stocks that are doing very well ytd. Qwest, Time Warner Telecom, Broadwing and others. POT and others in this industry (MOS) are running as well!

Click here

The Market Needs A Catalyst To Move Higher

Broadwing Update

Here is what the street knows. The recent partnerships with AOL, Hutchison (HTX), and Global Crossing and the follow-on business from those relationships will be the catalyst that takes us back up to the mid to high teens for BWNG stock. The convert price on the recent fundraising debentures is $16.60. Also, Fidelity (FMR Corp), upped their stake to over 11% because in looking at the big picture, they see the high demand for greater bandwidth media services that Broadwing brings to the table on a global standpoint through its optical network and solid partnerships.

Analysts and fund managers know that BWNG is significantly undervalued, therefore we would be aggressive buyers at these levels.

High Bandwidth Is The Future For Triple Play Services

Service providers are looking to offer triple-play services, therefore it is imperative that they have a network that can handle the bandwidth required. Broadwing (Nasdaq - BWNG) has the #1 optical network that is suitable to carry out the high demands for future media services!

Read The Latest Info
More Interesting Reading

Also...FLORHAM PARK, N.J., June 6 /PRNewswire-FirstCall/ -- Global Crossing (Nasdaq: GLBC - News) announced today that it has more than quadrupled the capacity of its global IP network backbone to support the growing customer demand for bandwidth-intensive applications and converged IP services. It has implemented a core network architecture that has more than quadrupled its PoP-to-PoP core capacity capability to multiple 10-Gbps speeds, while providing a Terabit-capable hub that enables an on-demand migration path for speeds up to OC-768.

Several Telecom Deals In The Works

TOP NEWS:

Telcordia executive appointed to presidential advisory group
Jul 6, 2006 2:52 PM

China Telecom becomes Cisco’s new best friend
Jul 6, 2006 1:33 PM

Nokia to promote Wi-Fi portfolio on NYC parks
Jul 6, 2006 1:24 PM

EarthLink, Time Warner Cable extend access deal
Jul 6, 2006 1:06 PM

Motorola buys its way into Clearwire's network
Jul 6, 2006 12:11 PM

Intelsat, PanAmSat merger creates global leader
Jul 5, 2006 7:05 AM

News Links Found Here

Several Telecom Deals In The Works: Telcordia, Cisco, Motorola, Clearwire, China Telecom, Nokia

TOP NEWS:

Telcordia executive appointed to presidential advisory group
Jul 6, 2006 2:52 PM

China Telecom becomes Cisco’s new best friend
Jul 6, 2006 1:33 PM

Nokia to promote Wi-Fi portfolio on NYC parks
Jul 6, 2006 1:24 PM

EarthLink, Time Warner Cable extend access deal
Jul 6, 2006 1:06 PM

Motorola buys its way into Clearwire's network
Jul 6, 2006 12:11 PM

News Links Found Here

Broadwing Chart

BWNG Chart

Broadwing - BWNG Looking Very Bullish

Broadwing has been under fire lately, but many analysts and traders like Ralph Acampora of Knight Trading feel that the telecoms will lead the market in the coming months. We agree with this rationale and Broadwing should move up nicely with recent news regarding alliances with AOL, Hutchison Telecommunications in Hong Kong, and others.

Following the Lead from stocks like EEM, AMX and PEIX....we could very well see a 20% spike in the stock on short covering at almost any time. Short Squeeze Info

Another Telecom Merger Announced Today

Telecom Merger Announcement

PALM Gets Clocked In Wall Street Window Dressing Today

Window dressing is the term used because at the end of each quarter, mutual funds have to show what they are holding in their portfolios, and it seems that they do not want to show a lot of PALM in inventory today. This could all change in the next trading session and saw today as a good buying opportunity. We saw similar activity with UARM in March when it tanked below $30 and today traded over $43.

Google, Broadwing, and Global Crossing: Is There A Fit?

Google wants a fiber optic network to help with their bandwidth needs in the coming years, however if Google were to build its own global or national fiber network, the project would likely cost billions of dollars and take years to implement. Click For Archived Story

Market Maker Manipulation At Its Finest

If you are down on some of your holdings, you are not alone. Several stocks listed here and elsewhere (we feel) are worth substantially more than what the market makers are putting a price on today. Recent corporate earning are going through the roof and nobody seems to be listening. I guess in reality, no one is really willing to sit in a buy huge positions by sitting on the Bid in the face of the Fed's actions this Thursday.

Therefore, market makers generally sit on the bids and if they continually get hit, they drop and keep dropping. Eventually, someone will step in and put a stop to this sheer manipulation of share prices if good stocks get too absurdly low. Afterall, if you had to sell your house in a day or two, what price do you think you would get? Top dollar? Probably not. We are all waiting for the nonsense to stop and sensibility to return.

Carlos Slim Loses Out On Univision Takeover

Our guess is that in the past few months Carlos has been selling massive amounts of Global Crossing through one of his companies INMOBILIARIA CARSO S A DE C V to stockpile cash for a bid to take over Univision. Carlos Slim's investors on the Univision deal was Grupo Televisa SA. Today, the announcement of a consortium of investors including media mogul Haim Saban agreed to pay $12.3 B for the company.

GLBC Insider Trades

Will Carlos repurchase shares of Global Crossing now that he lost out on the Univision deal? On a good note STT CROSSING LTD stepped in on May 30 and purchased $124,522,800 worth of GLBC at $20.

Shorts Are Covering On Broadwing

Broadwing Short Position Decreases By 20% - Click

They slam the stock in the morning and buy throughout the day it appears.

Forbes Report Says Hedge Fund Interest In BWNG and GLBC

Forbes reported that the Wall Street Journal says that hedge funds may see an opportunity for buying into beaten down shares of Broadwing and Global Crossing.

Broadwing - BWNG Notes

Broadwing operates a one-of-a-kind all-optical network and is The Leading Optical Network with 1,630 employees. They have unparalled customer focus and speed. Their growth products are: data, IP, and broadband/media services. Demand for high bandwidth services are on the rise.

Key development: Hong Kong based Hutchison Global Communications has chosen to partner with BW due to their technologically advanced network and innovative services. Parent Company HTX Stock

After 9 consecutive quarters of growth in broadband and data services, the partnering with Hutchison Global Communications that is owned and operated by Hong Kong's richest family, Li Ka Shing, and with the ever increasing demand for data broadband services should prove to accelerate future earnings and market share. The BW/HGC joint establishment of a new inter-carrier international Ethernet network enables international customers to connect multipoint Ethernet services from locations served by HGC in Asia, its Asian partners and others, with multipoint circuits in the United States. Both BW and HSC have validated the high demand for this new Trans-Pacific Ethernet solution. Further, HGC owns the largest fibre-to-the building telecommunications network in Hong Kong.

Company achieved BE in EBITDA in the 4th Qtr.

Billionaire John de Mol buys 3,800,000 shares of BWNG. Who Is John de Mol?

Taken From Forbes...Market Sees The Light In Optics - Forbes.com

Hot money and telecom investment are finally flowing into fiber optics again.

Forbes Article On Fiber Optics

There is no question that we see Broadwing - BWNG as a solid core holding. Those who are lucky enough to be in on the ground floor should benefit nicely as the word gets out about the growth of this company and their partnering deals. We feel that the institutions have been accumulating shares quietly over the past few months.

Major Reversal Today On: BWNG, GLBC, TIE, ATI, And Others

Shorts are getting squeezed today!

More Insider Selling On VistaPrint

VPRT Insider Selling Report - Click

Insiders have No confidence that the stock will go up it seems??

VPRT Insider Planned Sales Filings

The Market Finally Rallies Almost 200 Points!

Be careful though because Friday is tripple witching as options are set to expire, so Friday will be extremely volatile. We suspect that the market might trade down.

We Are BEARISH On VistaPrint - Too Much Insider Selling

Insiders on VPRT seem to be selling almost every day or so and its still not clear why the CFO says that he is leaving the company. This looks like a major RED FLAG to us.

INSIDER SELLING REPORT

The Markets Fell For An 8th Straight Down Day Erasing All Stock Gains For The Year For The Dow

Government data on the core Producer Price Index for May showed costs rising slightly more than Wall Street had expected and retail sales rose just 0.1 percent in May, matching Wall Street expectations. Some investors kept their money on the sidelines before Wednesday's much-anticipated Consumer Price Index report for May for a clearer view on inflation. U.S. markets also felt pressure from a global equities sell-off.

From Standard & Poor's Equity Research Today

Technical Outlook

The major indexes are still trying to put in a short- to intermediate bottom, in our view. Each test has been successful thus far. While we think that the market is close to a tradable rally, the indexes are very close to near-term chart support and any meaningful break (greater than 1%) below the recent closing lows would imply further downside, in our opinion. Bond yields have been holding near 5%, while crude oil has been stuck in a fairly narrow range.

Market sentiment remains fairly cautious, which should be a plus once it starts to move back to the bullish side. Overall put/call ratios remain extremely high, equity-only put/call ratios are starting to rise, while OEX put/call ratios dropped sharply and are approaching bullish territory. Both overall and equity-only put/calls are contrary indicators; OEX is a coincident indicator.

Longer-Term Economic Outlook

Incoming data continues to suggest that the economy is slowing, but inflation remains a threat. The evidence this month generally supports a pause at the June 28-29 meeting of the FOMC, in our opinion, but a renewal of tightening is possible if either the economy reaccelerates or inflation rises more rapidly than we expect.

Bernanke's June 5 speech stressed the need to control inflationary expectations, but also pointed out the slowing U.S. economy. We think this is still consistent with a pause at the June 28-29 FOMC meeting.

Thanks To Uncle Ben

The markets are acting like we just got 2 more rate hikes. When the market sentiment looks really bad, it can only mean that we are nearing a bottom and a rally is imminent. One has to believe that much of the bad news has been built in to the markets already. Any positive notes could send the markets surging to recoup the last 7 day losses.

We Are Pounding The Table On Broadwing At These Levels

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.

Many 200 Day Index Lines Held This Week

While many 200-day index lines held this week for several market indexes, longer-term momentum still appears to be to the downside. That's pretty much the case with stock markets around the world it seems.

Rails and metals are dropping, and they were our leaders in the first quarter of the year. No real industry is standing out as a leader now! The trouble is that investors don't know where to put their money now. Real estate has topped too!

It would be prudent to look for any 3 day runs to exit stock positions and wait out the market for better days since there is just too much skepticism abound. At least wait until we see some improvement and positive news from the FED. When the markets get rediculously oversold, then leg back in.

House Backs Telecom Bill

Click For The News

Expect A Rally Next Week

This sell off can't continue.

Washington See Economy Growing Despite The Market Sell Off

Economy News - Click

Indexes World Wide Have Broken Through Their 200 Day Moving Averages

The closing of the DJIA today and tomorrow will tell us where we stand.

Telecom Index Chart

Click For Chart

Pacific Ethanol Surges On Buy Recommendation

PEIX News - Click

The Buy target given is $34.00.

Broadwing GLOBALCOMM News

Globalcomm: Broadwing Beefs Up Global, Video Offers - Click

Broadwing - BWNG News

Broadwing Communications Deploys Acme Packet for Service Provider and Enterprise VoIP Services - Click

Coincidence? Jim Cramer - CNBC Connection With Driehaus Capital Management LLC?

In reviewing the holdings of this fund manager, it seems like there are a lot of similarities between the stocks that are recommended by Jim Cramer of CNBC's Mad Money and the holdings of Driehaus Capital Management LLC. Coincidence?

Click To See Driehaus Capital Management LLC Holdings

The MACD Line Has Crossed Up On BWNG - BULLISH

Daily Broadwing Chart - Click

Will the next move up be 57%, 67% or 77%??? See the weekly chart!

Weekly Chart On Broadwing - Click

Ethanol News - Big Three Meeting Set For Today

Wall Street Journal - Re-Post From Laura Meckler

The chiefs of the big, unionized companies—General Motors, Ford Motor and DaimlerChrysler’s Chrysler Group—still plan to meet with congressional leaders on Friday, where they will lobby for support for ethanol and other biofuels—an alternative energy source where U.S. companies lead the way. Support is growing on Capitol Hill for investment in these fuels as an alternative to dependence on foreign oil. Four meetings are planned Thursday, with Republican and Democratic leaders in the House and the Senate.

U.S. auto makers have already produced millions of these flexible fuel cars, mostly because these autos help them to meet fuel economy standards. And the auto chiefs will pledge to produce more in the coming years. But, as is, few of these vehicles actually do run on alternative fuels because few gas stations carry it, and Detroit will be looking for help in growing the ethanol infrastructure.

With gas prices topping $3 a gallon in much of the country, energy policy is hot in D.C. But it’s not at the top of the agenda. Thursday’s White House meeting was postponed because Bush plans a trip to Yuma, Ariz., where he will discuss border security and immigration. – Laura Meckler

Thankfully - The Short Term Trend Up Continues

There is no question that the short-term trend is strengthening from the weakness that we saw in early last week. The good news is that just about every market index has bounced off their 200-day moving averages.

From Merrill Lynch Research - Telecom Mergers

Merrill Lynch Sees More Telecom Mergers In The Works - Click

BWNG MOVING UP AS EXPECTED - THE MACD LINE IS ALMOST BREAKING THROUGH TO THE UPSIDE

See Broadwing Chart - Click

Paul Tudor Jones' Firm Buys 919,000 BWNG!

Hedge Fund Manager Paul Tudor Jones II firm shows up on our radar as a new Buyer of BWNG. Paul is an icon Wall Street investor and commodities trader.

Paul Tudor Jones II is Forbes #133 Richest Man - Click

Tudor Investment Firm - Click

Institutional Buying Increases - Click

SHORT SQUEEZE ALERT ON BWNG

SHORT SQUEEZE INFO - Click

There is over 8,450,000 shares short.

It would take 3 Days to cover.

The market cap is $990 Million, however it would cost over $5 Billion to re-build their already existing fiber optic network!

Insiders own 15%. Institutions own 48% up from 22% a few months ago!

The company is at BE EBITDA as well.

$20 near term is certainly doable.

BWNG Technical Chart

BWNG Weekly Chart

UARM and BWNG Similarities

Our old coverage of Under Armour several months back looks like BWNG today. One day it just turned up and it keeps going. Currently, UARM is up 17% from a terrible March. BWNG has had a terrible May similar to UARM's March! (Now keep in mind that this is where institutions are accumulating BWNG...right now!)

UARM Chart

BWNG: To Present At GLOBALCOMM 2006 June 4 - 8 In Chicago

GLOBALCOMM 2006 - Click Here

BWNG: To Present At SG Cowan & Company Conference Today

Market Activity Today

U.S. stocks had their biggest decline in two weeks, probably making May the worst month in three years, after consumer confidence declined, oil prices rose and Wal-Mart Stores Inc. struggled to meet its sales forecast.

Today's biggest losses came in the Nasdaq and Small Cap stocks as well as basic materials stocks. Emerging markets lost another 4.0% on average. This shows that investors are still selling their riskier holdings and moving some money to the sidelines.

Carlos Slim's American Movil - Triggers A BUY Signal!

Who Is Carlos Slim Helu? Ranked #3 Richest Man In The World - $30 Billionaire

AMX Chart

Covad - DVW Is Running Today

The MACD technicals look very bullish today.

Broadwing - BWNG To Present At The Cowen & Co. 34th Annual Technology Conference

BWNG NEWS AFTER THE CLOSE

Pacific Ethanol - PEIX Looks Very Bullish!

PEIX completed its 38.2% Fibonacci retracement from the high of $44, and continues to climb over the last few days.

What is a Fibonacci Retracement? - Click

Keep in mind, as oil moves higher so will PEIX and the need for more alternative fuels. Also, June 2nd should give PEIX a shot in the arm after Bush meets with the automakers and big oil to encourage everyone to use more ethanol.

Once PEIX hits $35, there is a very good chance that the stock will continue to regain some unwarranted lost ground and may acceletate back up to the $40 level.

Pacific Ethanol Chart

Hoping For A Pre-Memorial Day Holiday Rally Into Friday

iShares Emerging Markets EEM Index Tests Support

iShares MSCI Emerg Mkts Index Chart - Click Here

EEM Index Performance - Click

We Added Pacific Ethanol - PEIX Today

Pacific Ethanol Chart - Click Here

Keep An Eye On Titanium Prices Overseas

SUMITOMO TITANIUM CORP (TYO) CHART

Allegheny Technology - ATI

What is driving their success?

Infrastructure Building Around The World
1 Out of Every $ Dollar is Overseas
There Is a Major Shortage of Titanium Now World Wide
ATI Is A Major Supplier Of High Value Metals
45% of Their Business Is For Spare Parts For Major Engine Builders

AOL and Covad in High Speed Offering - Covad Higher Today

Merriman Curran Ford analyst has a $3.50 target on Covad.

Allegheny Tech - ATI Was Upgraded To Outperform At Bear Stearns

Bear Stearns Price Target = $80.00.

Three Stocks We Love To Own Now!

1) Broadwing - BWNG

2) Allegheny Technologies - ATI

3) Covad - DVW

Today gave us a major buying opportunity as traders washed out many small investors who capitulated early this morning. These stocks are in the oversold area waiting for a major bounce!

Yes - A bounce is due and we should run for a few days straight!

Be good.

Allegheny Technologies CEO Pat Hassey to Speak at Investor Conference

Allegheny Technologies - ATI announced that L. Patrick Hassey, Chairman, President, and Chief Executive Officer, will speak at the FTN Midwest Securities Corp. Specialty Aerospace Metals and Materials Conference on May 23, 2006. Mr. Hassey's remarks and presentation slides will be available at 12:50 p.m. on May 23, 2006 on ATI's website www.alleghenytechnologies.com under the Investor tab.

Covad - DVW Reversal Today - Stock Up 10%

Covad Chart - Click Here

NASDAQ INDEX Chart

NASDAQ Chart - Click to view

Market Appears To Be Oversold

The market is experiencing a short-term oversold condition as suggested by a high put-call ratio. This should lead to a short-term market bounce in the near term.

Patience Will Pay Off With BWNG

A Buy signal was confirmed today at $12.17 and the stock will continue to be rated a Buy as long as we close above this benchmark. Shorts should cover the positions immediately to avoid losses. Broadwing is now ready for a Bullish move up.

Merriman Curran Ford Reiterates A Buy On BWNG - Target $18.50

Today should indicate a Technical Buy if the stock stays up at the close over yesterday's close. Short sellers should consider covering their positions immediately if the market confirms this BUY signal.

AOL Launches Free Local Phone Service - Broadwing Is The VoIP Service Provider

Click here to read the story

More Detailed News

AOL is also offering a free local telephone number, which a subscriber can choose to keep even when they move to another city, and voicemail that's accessible through the PC. Subscribers can also receive and send text messages to mobile phones.

The paid service, called AIM Phoneline Unlimited, is expected to cost $9.95 a month for a limited time. Beyond the intro period, the service would cost $14.95 a month. AOL believes the paid service would be attractive to home and small businesses, particularly people selling on EBay Inc. or doing some other form of e-commerce.

AOL Phoneline would be available in the top 50 U.S. metropolitan areas, covering 80 percent of the nation's population, AOL said. Partner Broadwing Communications LLC would run the VoIP infrastructure.

Commodities Continue Correcting

High flying commodities have begun a correction stage that started the other day. Today confirms this more than last Friday. The Reuters/Jefferies CRB Index fell over 8 points (-2.3%) as 16 of the 19 commodities experienced selloffs. Most of the biggest losers we see are in the metals and energy markets which have experienced the biggest gains since the start of the year. Silver fell over -7% while gold fell 4%; aluminum and copper had losses of 2.9% and 3.7% respectively. Crude oil fell $2.50 (-2.4%) as other energy markets fell. With commodities under pressure, stocks tied to those commodities experienced heavy selling. Certainly, the day's weakest stock groups are in basic materials, precious metals, and energy.

Qwest to buy OnFiber Communications for $107 Million

Cowen & Co. Starts Covad At Outperform - DVW

Broadwing and OnFiber News - Repost

Could Broadwing be eyeing OnFiber as an acquisition candidate?

Broadwing and OnFiber Deal

Who is OnFiber? - Click

OnFiber's headquarters are also in Austin, Texas. Is this why Broadwing relocated to Austin? - Click

Market Summary - Inflationary Implications

There has been a lot of talk lately about the inflationary implications of the falling dollar, rising commodity prices, and rising interest rates. There is also a number of negative divergences in market breadth indicators. It certainly looks like all of those bearish influences have finally hit the stock market this week. A couple of bearish reports released today didn't help as well. Consumer confidence fell to a seven-month low and import prices rose to the highest level in seven months. The latter number just intensified fears of rising inflation. Now we're in the month of May which is traditionally the start of the weakest six months of the year. From a seasonal standpoint, this would be a logical time to expect some serious market selling. That's also true from a technical charting viewpoint.

A more serious sell signal would be given by an S&P 500 close beneath its mid-April low at 1280. The Nasdaq market has already broken its 200 day line support level.

Conservative investors might consider moving some money out of stocks and into a money market fund.

Top Insider Buying BWNG At $12.50

President of Sales and Marketing Buys BWNG at $12.50

Currently this insider holds 172,576 shares.

Broadwing Entered Into a Purchase Agreement

Broadwing Corporation (the "Company") entered into a Purchase Agreement (the "Purchase Agreement") dated as of May 9, 2006 with Jefferies & Co., Inc. and CIBC World Markets Corp. (collectively, the "Initial Purchasers"), relating to the private placement of $150,000,000 in aggregate principal amount of the Company's 3.125% Convertible Senior Debentures due 2026 (the "Debentures"). The Purchase Agreement contains customary representations and warranties of the parties and indemnification and contribution provisions whereby the Company, on the one hand, and the Initial Purchasers, on the other hand, have agreed to indemnify each other against certain liabilities.

The Debentures will be convertible into the Company's common stock at an initial fixed conversion rate of 60.2410 shares per $1,000 principal amount of Debentures (equivalent to an initial conversion price of approximately $16.60 per share, which represents a 25% premium based on a closing price of $13.28 per share on May 9, 2006), subject to adjustment in certain circumstances. In addition, the Debentures will accrue interest at a rate of 3.125% per annum payable semi-annually in cash. The net proceeds from the offering, after deducting the Initial Purchasers' discount and the estimated offering expenses payable by the Company, are approximately $145 million assuming no exercise of the Initial Purchasers' additional purchase option. The Company intends to use the net proceeds from the sale of the Debentures for general corporate purposes.

The Debentures will be redeemable at the Company's option on or after May 15, 2013, at a redemption price equal to 100% of the principal amount of the Debentures being redeemed plus accrued and unpaid interest and any liquidated damages, if any. The Debentures will be subject to repurchase at the option of holders on May 15, 2013, May 15, 2016 and May 15, 2021, and upon the occurrence of certain designated events at a repurchase price equal to 100% of the principal amount of the Debentures being repurchased plus accrued and unpaid interest and any liquidated damages, if any.

We Are Still Bullish On Broadwing Despite Selling Pressure - We Would Look For A Reversal After Investors Discover Why They Have Raised $300M

BWNG CHART

We Only See Upside From Here On BWNG

Expect the stock to move up a few points in the very near term. All of the pressure will be off of the company soon enough now that their $150M has been raised.

Also, we are still waiting for news about what Broadwing plans to do with their $300M war chest.
Reminder: The annual shareholder meeting is this Friday. Something's up!

Several Companies Rush To Raise Money - TWTC, BWNG, NFLX

In March, Time Warner Telecom (TWTC) said it launched a convertible debt offering of $200 million in senior notes due 2026, with an option for the underwriters the option to purchase up to $30 million more of the bonds to cover possible over-allotments. If you check your charts TWTC fell 5% to $14.11 in mid-day trading down from the previous day high of around $16.00. Within 5 trading days the stock rebounded from $14.11 to $18.73 or 32.7%.

The other day, out of nowhere, Netflix a debt free company announced that it was raising $100 million in a stock offering at $30.00. After the news, the stock fell to the $29.60 level and today shot up over $2.00 to $32.18 or 8.7% from the drop. Tomorrow it should continue its run.

We would expect the same activity from Broadwing in the next few days once we pass the initial shock of the company offering convertible debentures.

Given all that we know, Broadwing must be setting themselves up for a very juicy acquisition to continue to make the company more EBITDA profitable by reducing internal costs. Assuming a 50/50 cash to equity ratio, Broadwing's $300 million in liquidity post-deal would give them up to $600 million in acquisition buying power. So, looking at a best case scenario their leverage = $600 million in acquisition Enterprise Value (EV), 3.0x post-synergy EBITDA for the takeout. Theoretically, Broadwing's '07 EV/EBITDA multiple could fall from the current state of around 20.0x to a low of 6.0x. This would be very bullish. Stay tuned for more updates.

Rail Stock Are Still Running Strong

Don't forget to take some cash off the table.

Netflix - NFLX Upgraded by Cowen & Co from Neutral to Outperform

Scouring Through Our Research Even Cramer Says Buy, Buy, Buy

Monday May 8, 2006 Even Cramer says Buy, Buy, Buy and he has been on the opposite side of us on a few occasions where we have outlined some very good ideas for investors contrary to Cramer's picks and flip flopping. Today we are on the same side - both liking BWNG!

Also - Re-Posted from Cramer's Mad Money Show on CNBC, March 2006 - - - - - -

'UNDER THE RADAR'

LET'S GO IN THE WAYBACK MACHINE - 5 YEARS. BWNG HAD A VISION. IT WAS A VISION FOR AN ALL-OPTICAL NETWORK THAT COULD BE USED TO TRANSMIT VOICE AND DATA EVERYWHERE!

OH, WHAT DID THESE GUYS DO AT BWNG? THEY SPENT A FORTUNE BUILDING THE NETWORK. AND THEN, THE STOCK SOARED TO $1000 (REVERSE SPLIT ADJUSTED).

EVEN IF YOU'VE NEVER HEARD OF BWNG, YOU KNOW WHAT HAPPENED NEXT. NATURALLY, BWNG ALMOST WENT BANKRUPT BUILDING THE DARN THING. AND THE STOCK SANK ALL THE WAY TO $3 A SHARE.

JUST LOOK AT THIS CHART (5.5 YEAR CHART SHOWN), WILL YA? THAT IS A CHART OF HEARTBREAK; THAT IS A CHART OF HEAD CUT OFF; THAT IS A VERITABLE TRAIN WRECK!

OBVIOUSLY, WITH A CHART LIKE THAT, I'VE HATED THIS CO. FOR MANY YEARS. THEY WERE JUST BUILDING THIS NETWORK FOR YEARS, AND LEAKING MONEY ALL OVER THE PLACE. HOW COULD I, CRAMER, LIKE A STOCK LIKE THAT?

BUT, YOU KNOW WHAT? THINGS CHANGE; THINGS CAN GET BETTER. NOW, BWNG IS FINALLY FINISHED BUILDING THEIR OPTICAL NETWORK. IT'S UP AND RUNNING AND BWNG SHOULD HAVE POSITIVE CASH FLOW NEXT YEAR.

ALREADY, THE STOCK HAS $1.50 IN CASH PER SHARE, AND IT'S ONLY TRADING AT $9, GIVE OR TAKE, BUT NOBODY SEEMS TO NOTICE! EXCEPT FOR CRAMER.

BWNG IS FINALLY BREAKING OUT, AND THE ONLY PEOPLE WHO KNOW THAT ARE THE PEOPLE WHO WORK THERE, AND CRAMER!

EVEN THE WORST, MOST BROKEN CO., CAN STILL TURN ITSELF AROUND, AND YOU CAN CATCH THAT TURNAROUND, AS LONG AS YOU KNOW WHAT TO LOOK FOR.

I THINK BWNG IS NOW A HUGE BUY!! YOU CANNOT ALLOW YOURSELF TO BECOME INFLEXIBLE JUST BECAUSE THE STOCK CAME SCREAMIN' DOWN 1000 POINTS, AND THEN FLATLINED FOR A FEW YEARS. YOU BECOME INFLEXIBLE - YOU MISS OPPORTUNITIES, AND OPPORTUNITY IS WHAT THIS GAME IS ALL ABOUT.

I THINK YOU WANT SOME COLD, HARD EVIDENCE BEFORE YOU PRONOUNCE SOMETHING AS BROKEN AS THE BWNG, TO BE ALIVE AND KICKING.

THE POSITIVE CASH FLOW IS GOOD; CASH ON HAND IS GOOD. THAT'S FAR, FAR FROM ENOUGH. OKAY, SO THEY'RE DONE WITH THEIR OPTICAL NETWORK. YOU STILL NEED MORE THAN THAT BEFORE YOU PULL THE TRIGGER ON SOMETHING AS DECIMATED AS BWNG.

YOU CAN REALLY SEE THE TURNAROUND HAPPENING IN THE NUMBERS. FOR THE 4TH STRAIGHT QTR., BWNG IMPROVED THEIR CASH FLOW BURN RATE, SO THEY'RE EATING MUCH LESS MONEY. LAST QTR. WAS THE FIRST QTR. IN 5 YEARS WHERE THE EARNINGS BEFORE INTEREST, TAX AND DEPRECIATION (EBITDA), FIRST TIME THAT IT BROKE EVEN.

BWNG JUST MADE THEIR LAST CONVERTIBLE PAYMENT, AND NOW THE STOCK IS ALMOST DEBT-FREE.

IF YOU WANT TO KNOW WHY THE STOCK HAS ALREADY GONE FROM $4 BUCKS TO ALMOST $9 AND CHANGE IN THE PAST 10 MONTHS - ALL OF THAT GREAT STUFF IS WHY.

BUT I WASN'T GOING TO RECOMMEND BWNG BECAUSE THEY BURNED LESS CASH OVER 3 QTR.S. HEY, THAT'S DARNING WITH FAINT PRAISE. I NEEDED MORE WEIGHT BEHIND THE EVIDENCE BEFORE I WAS GOING TO PUT MY NECK OUT ON THE LINE.

BUT NOW THE NUMBERS ADD UP. WITH $1.50 IN CASH PER SHARE, THE CO. CAN GO THROUGH 10 QTRS. BURNING MONEY AT THE PRESENT RATE, BUT THEY'LL BE FREE CASH FLOW POSITIVE NEXT YEAR. SO IT LOOKS LIKE THEY'RE KIND OF SET WITH THE MOOLAH.

THEIR VOICE REVENUES ARE DOWN, BUT THEIR DATA AND BROADBAND GROUP GREW 15% LAST QTR. BWNG HAS BEEN SEEING INCREASED ENTERPRISE DEMAND FOR ITS PRODUCT BECAUSE THEY SPENT A FORTUNE BUILDING THIS BEST-IN-CLASS OPTICAL NETWORK. THEY ALMOST WENT UNDER BUT, PRETTY SOON, BWNG SHOULD BE GETTING OUT OF THE RED. THAT IS AMAZING; I CAN'T BELIEVE IT MYSELF.

THE BOTTOM LINE!: I THINK YOU SHOULD BE FLEXIBLE AND BUY SOME BWNG! AND I NEED YOU TO DO IT NOW BEFORE EVERYBODY ELSE STARTS YAPPING THEIR DARN FOOL HEADS OFF ABOUT THE TURNAROUND, AND YOU MISSED THE BOAT!

Something Is Definately In The Works At Broadwing - BWNG

Broadwing currently has $100 million in the bank, a $75 million line of credit and has just announced that it "plans to raise" another $125 million. They haven't done it. They just "plan" to do so they say. For what its worth, there were no details attached to this announcement either, so the only thing that you can read into this is that they have opened up the offering for bidding by institutions who may want more of what Broadwing has to offer its good investors. Since nothing is finalized, our feeling is that if Broadwing doesn't get the terms that they want, the offering could be cancelled. It is quite possible that the current shares could get bid up like we have seen in other recent offerings with TWTC and GLBC. Maybe this is their way of shaking out the small investors for all we know at this point before the shares move higher? What could they be up to? Dr. Huber the former CEO says that their fiber optic lines would cost over $5.5 billion to replace and those lines are currently valued at only $1 billion.

Also, keep in mind that the annual shareholder meeting is this Friday, May 12, 2006. They would be crazy not to announce something poistive by Thursday. Lastly, lets not forget that CIBC World Markets just gave the stock a BUY rating about a week ago with a target of $18.00. Are they underwriting the offering? We shall have to see what they have up their sleeves!

A funny coincidence, Netflix - NFLX also just announced that they were raising $100 million too and their stock (like BWNG) has trippled over the last year. They don't need the money either?

We will have to be patient and eventually investors will need to make some serious decisions, but not until the company tells its story on May 12 at the annual shareholders meeting.

We would expect an acquisition announcement soon to explain the use of their funds so that the company can further increase their EBITDA position.