I have also made money buying what Cramer says to stay away from.
Remember when they used to have a stock advisor on cable named Dorfman in the 90's?
He did the same thing.
We figured that the big boys and funds wanted to sell out at a higher price as Dorfman's TV sheep bought on his advise.
Is Cramer any different, besides acting like a clown?
Cramer's comments do impact stocks, briefly, and that hit FTR. The second shoe dropped when Barron's said what many have long suspected/feared: when the VZ-FTR deal is done and VZ shareholders hold a huge percentage of FTR stock, they will dump FTR and the stock will freefall. They also "happened" to mention that other VZ deals have led to bankrupcy.
A lot of fearful people fled the stock today and that pushed the stock price down. Others, like me, were happy for the buying opportunity. Personally, I hope for more days like this.
This is a real dividend gem and I plan to own FTR for a long time regardless of what the speculators are blathering about.
It is going to be expensive for FTR to implement and expand new services to the neglected former Verizon rural areas. I don't see how they can continue to pay a reasonable dividend and upgrade the plant and central offices. They will be issuing so many new shares to Verizon SH's, that even with dropping the dividend to 75 cents, they will still be paying out more than they are at the present.
I see rough seas ahead, and I do believe that many VZ SH's will dump their shares causing a drop in the SP.
We can thank Cramer the Clown and Barron's for today's drop.
The ex-dividend drop would have been on Monday, because if you bought it on Monday you would not be entitled to the dividend.
Found part of my own answer. The stock is going ex-dividend. This should have only caused a 25-cent drop in value though:
STAMFORD, Conn., Oct 28, 2009 (BUSINESS WIRE) -- Frontier Communications Corporation (NYSE:FTR) announced today that its Board of Directors has declared a regular quarterly cash dividend payment of $0.25 per share of common stock, payable on December 31, 2009 to holders of record of common stock at the close of business on December 9, 2009.
Frontier Communications [FTR 7.7106 -0.4694 (-5.74%) ]: "I can't get behind FTR here," Cramer said.