"We don't believe the decision is as bad as it seems at first glance," he said. He noted that CenturyLink is set to start paying cash taxes in 2015, and that it would have had to reduce its payouts at that point in any case. Doing it early takes some potential for speculation out of the stock, he said.
And From ML: We view CTL as an attractive combination of: 1) a team that sets and beat
conservative targets, 2) nearing a positive growth inflection, 3) and a healthy yield
of 7% from 58%/54%/63% FCF payouts in 13/14/15. Assuming the $36 aftermarket
trading price, CTL will offer a 6% yield on 46%/43%/50% payouts, which
despite the dividend cut we view as an attractive yield and reiterate our Buy
rating. We expect choppy trading and negative sentiment to hover over the name
for some time, but assessing the story CTL will become after tomorrow, we are
not knee-jerk downgrading at this juncture.
Ok this makes sence now. But why not let the share holders know about this decision in advance. Was CTL management thinking that if they let us know early, that investors would of sold this stock off? Double edged sword.
of course it would have sold off and probably just as much .. they obviously did this to get the share price down so they can take $ out of our pockets and put it in theirs .. 1 1/2 yrs. of going up all taken away in a few hrs. they can kill my a.s .. i bought at 32 so my entire gain was wiped out .. im #$%$ but if i had been buying this yr. , id be ready to bash some heads ..