Company is solid, has infrastructure assets, a near monopoly in some ares (pricing power) and revenue that's not going to disapear.
Although they have said the dividend will not be cut, obviously that is a possibility. But even if the dividend were cut to $.25 cents per share, this is by no means a $4 or $5 dollar stock.
What am I missing? This stock is more like a utility than a standard company, and FCF is more than enough to cover the dividend. Where it serves much of it's market, wired broadband is not going away. Just ask anyone (NOT within the outskirts of a city or on a major hwy route) how wired broadband is as compared to wireless broadband. Wired is NOT going away in a year. Or two or three.
beg to differ at 25c, 4 bucks is full value.. and truck should load up at thet price.. even if divy suspended as does have potential to hit 6 bucks in a few years .. about as good a bet as is around .. maybe svnt or a few canadian gas plays that have hit rock bottom BUT am holding for 4 bucks to pick it up IF currently held, may as well continue holding
I have bought more, and will get more to DCA as well, but if divvy gets cut then I will need to re-access my reason for having a large position. Will probably sell at any point that I get close to even if that happens and put the money to work somewhere else that is throwing off cash, like REM.
VZ has spun off or sold several portion of it's assets. I have had large losses on all of these transactions. I also have taken losses on other stocks that have been a result of a spin off. IMHO if one gets a spin off sell the stock. It will be the best price you will get. The companies selling or spinning off the assets are getting rid of non producing assets.
To keep up with the "Jones", look for a few brokers to downgrade the stock in the next few day's which will cause big swings in this stock. Maybe a good time to do some "Dollar Cost Avg" in the stock if you stand the swings.
I think it's the big money bond holders sending a message to the CEO that they are more important than the common shareholders. Their showing that they are the market makers and they control the rating agencies and will leak news to there hedge funds to maintain power. SEC your such a peace of trash! CEO will cut div like a good little girl.
This just happened
Standard & Poor's Ratings Services lowered its outlook on Frontier Communications Corp. (FTR) to negative from stable, noting the regional telecommunications provider's declining revenue due to competition from wireless substitution and cable companies that offer telephone and data services.
The ratings firm, which affirmed its corporate credit ratings two notches below investment grade at double-B, said it expects Frontier will be challenged to meaningfully improve its operating trends in the near term.
DOW JONES NEWSWIRES Standard & Poor's Ratings Services lowered its outlook on Frontier Communications Corp. (FTR) to negative from stable, noting the regional telecommunications provider's declining revenue due to competition from wireless substitution and cable companies that offer telephone and data services.