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Frontier Communications Corporation Message Board

  • gmh1 gmh1 Dec 22, 2013 4:58 PM Flag

    why make a purchase (from AT&T)

    maybe I am missing something ? They claimed the 2 billion dollars used for ATT purchase was already available, thus not causing more debt or danger to dividends. But if it was available , why not simply buy back 2 Billion of FTR stock. The remaining shares would then receive close to double the present dividend , driving the stock price to probably twice what it is now

    Sentiment: Hold

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    • why make a purchase (from AT&T)?

      Ummm....to grow the business. This purchase will grow FTR by 25%. FTR will realize $200 million in synergy savings by cutting overhead costs out of the new Conn. property and use additional revenues to service new debt and safeguard the dividend.

      Its called growth through acquisition....everybody's doing it.

      Sentiment: Buy

    • You might have read what I had posted back to now2000p in the other thread. Just to clarify my previous post reply, the financing is there with JPM and they said we will finance the deal. However CFO did say they would review it and discuss with corp. Does that mean they will finance 1.9B. Who knows. I also read that FTR expects 1.2B in revenues after the deal. Far as buyback of stock he is right. Someone correct me if I am wrong.

      Sentiment: Hold

    • "maybe I am missing something ?"

      FTR is borrowing $1.9b of the $2b purchase price -- so it's a 95% debt deal with $100 mil FTR money down.

      FTR can't buy much stock back -- they simply don't have the money.

      The way you talk you must have also missed the fact that FTR is losing existing customers faster this year than last year.

      • 2 Replies to now2000p
      • gypsymann@ymail.com gypsymann Dec 23, 2013 7:41 AM Flag

        The customer loss is fact. FTR or M.W. decided not to report R1 / B1 line loss numbers and only report broadband gains. This is the smoke and mirrors trick I have mentioned several times. Normally when a customer drops a service like a land line, they switch providers. The bundle is where you get your savings and TM / Comcast basically give you the land line (VOIP) in their bundle to get you to take their triple play. FTR cannot come close to the speeds they offer either.

        There is a lot of recurring revenue (cash) being lost as a result of customers droping their land lines. There is no way that the broadbad adds equal the amount of land line losses, especially in revenue. In a few years reality will hit and rreally hit hard to the bottom line results.

        If FTR reported the land line losses this stock would be in the $2 range. Investors would run away if they knew the whole picture.

      • now,
        You were ok until you brought up the losing customer's thing. You do realize they are growing broadband customers by the thousands. I wouldn't normally reply to you, however I do have a couple points. #1. You claim T Mobile for all your issues?. #2 You don't even read or listen to the conference calls [cc's]. #3 You ask me about JP. As in JP Morgan. Homework?

 
FTR
6.54+0.02(+0.31%)Sep 18 4:00 PMEDT

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