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Frontier Communications Corporation Message Board

  • johnandtai johnandtai Feb 15, 2013 11:36 AM Flag

    Divi safe and we have a buying opportunity.

    The FCF is more than enough to carry the .40 dividend currently paid. The company already cut the dividend last year from .75 to .40 in order to get the financials healthier. There is no reason to cut the dividend this year.
    The only reason the divi looks rich is the recent drop in share price.
    I see this as a buying opportunity.

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    • John Wrote, "I see this as a buying opportunity."
      That's what I thought as I kept buying, while the cut in CTL's dividend caused the SP of FTR to drop, but CTL is up today and FTR is still dropping.
      I wonder if the earnings report to be released on the 21st is negative news?
      I'm trying to decide whther to buy more FTR, but I am way under water on the shares that I bought before the slide that started this week. and shares I bought yesterday.
      I really expected the FTR SP to be up today, and am perplexed that it is down with CTL going up.

      Any thoughts, anyone?

      Sentiment: Buy

      • 2 Replies to iamnathan
      • nathan wrote: "while t'he cut in CTL's dividend caused the SP of FTR to drop"
        What did I miss? How did CTL div cut cause FTR sp to drop??
        (not arguing - trying to learn)
        Frank

      • burnaka@sbcglobal.net burnaka Feb 15, 2013 12:08 PM Flag

        What part of third downgrade with average PT about 3.78 are people missing. The first down grade by GS was an outlier, now it is consensus. When ftr reports there is a real chance they miss on both top and bottom line. Yes they can pay the divi, and yes they can cut costs, but they cannot pay debt, divi, and grow. They have no cloud, they have no TV like ctl. Revenue decline was helped by Sandy, and the Cliff issues. Guarantee they LOST business revenue.

    • swp3@sbcglobal.net swp3 Feb 15, 2013 11:53 AM Flag

      Hope you are right added a bit more now cost basis around $4.40!

    • "The FCF is more than enough to carry the .40 dividend currently paid. The company already cut the dividend last year from .75 to .40 in order to get the financials healthier. There is no reason to cut the dividend this year.
      The only reason the divi looks rich is the recent drop in share price.
      I see this as a buying opportunity"

      S&P pointed out that FTR's FCF after the current dividend was heading to an amount equal to about 5% of its $8.2 bil or so of long term debt. The big question is how are they going to continue to invest in new assets like a CTL or T and still have enough to retire all the debt?

      The idea that once the conversion was over that FTR would have a long period wherein capital investment would be low isn't operative anymore. TWC & Comcast are not standing still -- they are investing in new technology. So must FTR -- that is the stated reason why CTL cut their divided -- as part of a capital budget realignment.

 
FTR
6.65-0.14(-2.06%)Jul 30 4:00 PMEDT

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