Won't matter if you respond or not since you don't know what you're talking about. You come with DEX and Directory? DEX went bankrupt and Directory was dropped because they couldn't charge enough to support the service - a loser - get it? Qwest has vast area and middlesized cities, both bad for cellular operators. They had no business operating their own network, it cost them multi millions and never had a chance on its own. Another loser - get it?
qwest, with it's huge area and multiple metro areas, shouldn't have been involved in wireless. i won't respond to the rest of your message because this comment is flat stupid. but who cares. qwest is dead and gone.
Wrong question! Is the dividend safe - should be the question. This is a dividend investment. Has been forever. Where the stock is heading isn't why one would be attracted to CTL. Some of us want that 7+% dividend ride - and yes, my view is that it is safe. These guys have been doing this business model a very long time.
You take a company that's been mismanaged and dying for years (Q) and combine it with a company that primarily deals in antiquity (CTL) and you can't expect a great company to emerge. Certainly Q was a more sophisticated and current company but that culture will give way to the takeover company.
A lot of the stock appreciation over recent months, particularly for Q, was the "merger". That's now behind us and there is no excitement about this combination...and down goes the share price.
WIN is a much better telecom stock based on the dividend and management. Well worth buying on the dips.
As far as the stock price goes...I had thought it would end the year at about 38. I'm going to lower that to the 36 dollar range. Not a reflection on CTL as a company, just the stock price.
As far as the company itself goes, while I agree that "bigger is better", it's also more expensive to maintain. It's all going to come down to revenue, anything else will be a smoke screen. I personally don't see the bottom on the revenue angle yet, may be getting close though.
They stole Qwest. I have a bunch of CTL converted over from Q. I wanted out when Q was gone and planned to sell. But the more I thought about what CTL got for their shares the more I was compelled to stay on. They now have a coast to coast fiber backbone that is right in the middle of 4g and they resell V which just got Iphone. That fiber is worth the debt they brought on with Q and they could sell that if they wanted and plow cash flow into IPTV, FTT*, WiMax etc. Last thing, 'only landlines', look at the wire center to residence ratio of a Bell network compared to cablecos headend to same and you'll see great value in that copper as transmission technologies progress. The only downside is can they swallow Q etc. Most certainly they can. Acquisition is what they do and Q was already stripped to the copper, regionalized and structured for integration. This is a $60 stock a year from now.
You are spot on. Q brings a very good cash flow to the game and I think CTL knows how to integrate acquisitions. Q was downsized already which should make the integration go smoother. Landlines are rapidly migrating from POTS to high speed multi types of data services. The potential game changer for CTL though is the fiber network. It could turn out to be the real value in the next few years. I'm holding and plan to enjoy the 50% increase in the dividend while the stock price steadily rises.
Here's my take on CTL:
The high divvy holding up the stock - for now. If divvy decreased to save on merger costs - buyer beware.
Management trying to re-create the wheel. If they can covert those with landline phones to package deal like internet, and/or tv for 75%-90%, they got it made.
Q merger might be the straw that broke the camel's back. It will be a challenge and take more time to digest.
Some see <35 if things not working out; >45 as success. Earnings and management comments coming soon - stay tune.