I own a little bit of this company as a spec investment. Here's my take. They are trying to move forward from a rural communications provider to a more diversified telecom...similar to what CTL is doing, however, the difference is CTL is executing much better as evidence by their much better cash generation...I own quite a bit more of CTL.
I expected the paetec acquisition would stabilize WIN's cash flows, while the EPS figures fall with the added depreciation costs. While year to date, WIN has produced enough cash flow from operations to sustain the dividend, this last quarter was a miss with regard to cash flow...mainly because the cap-ex was higher than I expected. As a result, they did not generage enough cash to cover the dividend this past quarter. They made up the difference via current cash on hand and borrowings...probably why the stock tanked today. I'll hold out a bit longer. Want to see how they finish out the year. If they can get that cash generation on an upward tragectory, WIN will be worth continuing to hold. Just my two cents.