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EarthLink Holdings Corp. Message Board

  • accugrowth accugrowth Feb 19, 2014 11:21 PM Flag

    ELNK Projections for 2014 Look Good

    ELNK spent lots of money during the past couple of years to build out their network and establish the Data Centers. Therefore, in 2014, Depreciation remains high in the $190M range and will decrease in future years. This a paper write off. Cash Flow will be high enough in 2014 to easily cover the dividend and potential share repurchases during the next several months. No worries.

    The per share Net Loss for 2013, $5.25/share, seems high until you read that it is mostly a paper write off also. The Adjusted Net Loss of $.13/share for Q4 is smaller than the $.19/share Adjusted Net Loss that the company projected on the Q3 report. Most analysts estimated a Net Loss of $.19; the better than expected results should improve the share price tomorrow AM.

    The company does need to express a plan to grow Revenue. Hopefully the new CEO will address this issue in the conference call. McRed will tell us that the sky is falling. IMHO the low debt ratio and cash held puts ELNK in a stronger position than most of their competitors. RAX has lower debt, but they need to spend capital to build out more Data Centers, if they want to grow. The cash to do that needs to come from somewhere. ELNK has completed their build out. Make your own decision regarding who may be in the better position going forward.

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    • Terrible earnings. Revenues continue decline. Nothing in this earnings is positive, nothing

    • You are correct more than enough to pay dividend... results are better than expected and while they are down taking the non-cash write down is a good move... This is a 7-8 buck stock trading in a charade from shorts at 4 bucks. The shorts playing on options and hoping for a miracle to get it under 4 bucks before friday and they pushing with all they have. They were hoping for a bombshell earnings report and didn't get it the slow action is foolish investors that panic and sell when they r down a dime in a stock even though the stock pays 2 dimes a year in dividend how silly is that. LMAO

      Sentiment: Strong Buy

      • 1 Reply to eddyfamilyemail
      • Short sellers only represent 8% of the float. I do not think they are a controlling factor. RAX is dealing with a 19% short interest and they have very little debt to stir the threat of bankruptcy. ELNK has USA fiber routes which are a hard asset; RAX pays rent for everything. It is a Tortoise (ELNK) vs Hare (RAX) thing.

        Future Revenue is the challenge; McRed and I agree on that point. The old CLEC income will carry ELNK for a few more years until the Cloud business grows. This is a long term investment with a dividend that pays you to wait.

        I was hoping for news about the ELNK connection to the Mobile Cloud via Sprint Spark. It looks like I need to wait a bit longer. No worries.

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