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Consolidated Communications Holdings Inc. Message Board

  • aga0115 aga0115 May 23, 2012 9:04 AM Flag

    Well, if the dividend remains the same

    buying in will be a great deal now. However, most times where there is smoke, there is fire and yes, us small investors will be the last to know. I'll be watching closely, not selling any, but may add when the dust settles. Down market today may push it below 15. Still long term, probably a good entry point.

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    • CNSL recent decent based on Surewest merger might hurt future earnings.

      If CNSL trades 11-12 range, dividend in jeopardy of cut, as it will be over 11%+.

      • 1 Reply to joetong419
      • according to the S&P report;

        Consolidated's pro forma dividend will be sizable, at about $60 million, it
        has some discretion to curtail dividends to bolster liquidity. However, we do
        not expect the company to use this flexibility unless it is under financial
        stress. If net debt leverage exceeds 5.1x, the dividend must be suspended
        according to the terms of the credit facility.

        SO any mild recession, downdraft,rapid loss of land lines, failure to achieve cost savings etc. makes this div suspect. i could see them cutting it, the stock would never recover if they did.

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