Too late to sell. The selling is over. If you want a 6.7% dividend you keep the stock. If you want to write off the lost on taxes and get the 0.9% interest the banks are paying you sell the stock.
You could try to share average to reduce your overall price per share if you have the money to do that..
If you do put a stop loss order so you don't continue to chase it down to the bottom.
It's somewhat risky to do so.
One additional noteworthy item: CTL's bond rating has been adjusted to a riskier rating: From BBB- to BB+. Is this colateral damage they hadn't considered and does it mean that their interest expenses have just jumped higher.
Can anyone offer a thought on the net outcome from the two actions taken today by the CTL board along with the reduced bond rating? What's the math to figure out the effect?
It's a tough call. I'm in at 32. Didn't think the dividend was in question due to their strong cash generation. Am #$%$ that it wasn't somewhat telegraphed similar to what EXC did. That said, I'm thinking it might be too late to sell now that we're down nearly $7+ in after hours. At 35, the new yeild is about 6+%. Dividend would then be equal to about 60% of FCF after their tax benefits are done. Seems to me the company would be in a better position financially from here. Just puts a big dent in the returns I had...
we (meaning me) were all a little blind to the long term structural risk of declining revenues and customer base. This type of thing is likely to continue to happen over the long term - either gradually or in fits and starts such as now. It's the long slow goodbye - a bit like newspapers - unless they can really re-invent and build revenue and customer base with improved competitvely priced services.
im also in at 32 .. in 1 hr. its gone from being near the best issue i have to a major disappointment .. when it got up to its old highs , i decided to keep it just for the dividend .. thanks management . they did a great job of screwing everyone today .