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Consolidated Communications Holdings Inc. Message Board

  • watermain52 watermain52 Jan 16, 2008 9:47 AM Flag

    Citibank downgrade

    CNSL is getting slammed on, I believe, a downgrade by Citibank from hold to sell, with a price target of 13. The reasoning is that the recent NPSI acquisition will cause operational difficulties and revenues losses...

    At the same time, Citi admits that the dividend should be secure at the current rate until 2015! What a bunch of crap. The truth is that Citi has been pumping EQ for months to no avail -- so it's no coincidence that they just happen to name EQ as their favorite RLEC.

    Lehman, on the other hand, has a 24 price target on CNSL, noting the strong results for the third quarter and claiming that the NPSI acquisition should be accretive to EPS.

    I certainly don't think that CNSL is a best of breed company...But I've been following it for more than a year and the results have been solid all that time. The debt load is high, but financing costs are low and they have strong cash flow and IPTV sales look promising. Plus, you get a 9 plus divie that certainly looks secure -- compare that to what the ten year is paying.

    Does this really deserve a dividend of 11 percent?

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    • Thank you for that EQ symbol. I own CZN,CNSL,OTT,IWA,WIN and FRP. They are all bottoming
      today, feb-14 the quarterly
      midpoint. If the DOW stays
      above 12,000 and remains
      steady then these prices are an awesome time to open
      new positions. Aggressive
      income. Don't bet the farm.
      I'm buying another block of CNSL.

      • 1 Reply to blueshade44
      • seems to me people are gonna be looking for high yield anything very shortly!!...inflation is taking isnt going into real estate....recesion fears keeping them out of growth....treasurys tanked with the rush to is in the later stages of its runup...where else you gonna go?'s? lock em in folks..... at 3%?...somewhere along the line yields will attract new money bids my shares back up.... and round and round we will go!!!!

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