Buy more now or wait and see if a better accumulation point presents?
I am torn. LIke this company a lot, since the merger especially. See a decent upside and a solid (and high,.well at least until the stock grows into it eventually) dividend...
Seems like a 50/50 chance this will go down more before earnings. I am not confident of a big rebound, even with good earnings in today's market, but I want to hold this stock for the dividend and longer term appreciation as the full value of the VZ properties are realized under FTR's bottom line results (about 1-1/2 to 2-1/2 more years). I do have a decent position, but the urge to add more and average down a little is strong. Bought more yesterday, so I'd like to wait for an even better price if I can get it.
I think we may see $7.5 though, maybe even $7.25, but I could be wrong. Price is soft now but volume is not great, so this is not conviction selling.
Maybe precautionary, or portfolio balancing or just market jitters prior to earning by investors that have not done any careful DD on this stock.
It is a different animal post merger, however in this market with the US debt worries weigh on stocks, anything is possible.
I have a good position, may continue to nibble on the way down as I do believe the dividend is safe for the next couple of years and the company will be able to generate enough free cash flow to pay the dividend, pay down some debt and modernize the purchased properties while bringing them fully under the FTR umbrella. I see the synergies being realized from this deal in 2013 and 2014.