CTL is currently carrying 19 billion in debt according to Yahoo. Can anyone comment on CTL's financial ability to carry on and pay current dividends after the aquisition? I notice a lot of short sellers who think not. Anybody got some good metrics to go on? (Short sellers are wlcome to comment. I knew you would.)
If a stock goes up after a split it would have gone up without a split. A stock selling for ten times earnings does not all of a sudden sell for twenty times earnings because there are twice as many shares.
I will agree that stocks that split have usually been going up in value prior to the split. That they continue to go up after the split is just a continuation of the trend. They most likely would have gone up a similar(adjusted) amount without the split.
No, a $.12 increase would be a $.12 increase. the increses are usualy smaller for a short time and then your prices make it back to right about where they were before the split. Look at past trends and even the price trends of this stock both pre split and post split. Just check it out and hold it in your hip pocket for the future. There is no charge for the information and it will not help or hurt me either way. You won't get much richer over night after a split but it has the potential to make you richer over a short period of time. You'll find that this is pretty accurate information if you research it. Look at WMT. Wish I had bought a pile of that back in the 70's but my parents wouldn't let me cross the street by myself to go and buy stock shares.
"a $.12 increase in price is only $1200 if you have 10000 shars but, that same $.12 increase in price is $2400 if your stock split and you now have 20000 shares."
After a split, that $.12 increase would only be $.06 increase and the price increase would still be $1200. A split does not magically create value.
Your right jerrygriep. I have been wondering that same thing myself. I am in hopes that a split might be in our futures but, what do I know. I feel like it's more likely because of the size company this is about to become. It was just a "Mom and Pops" kind of business 10 years ago and look at it today. With the Embarq merger and now the upcoming Quest thing. Maybe we will get lucky on this one. Good luck to you.
The pro forma debt after merger is $19 Billion, with a current portion of $2.6 Billion. To service it, the combined entity has pro forma income of $1.4B, pro forma depreciation of $4.1B and pro forma interest of $1.5B. This is enough to cover debt and maintain the dividend.
All figures above are from the merger prospectus dated 7/19/10.