The very words from Fideity Brokerage when I tried to buy the stock. 6.5 million more shares outstanding than 2 years ago. Who is going to buy? 6 .5 anxious sellers waiting to dump their shares: in a market where CNR sees 0 , 100, and 250 share days. What Was CNR thinking when they issued those 6.5 million new shares?
YOU are partly right. Preferred dividends are subtracted from net income to give you earnings per share.but common dividends are subtracted from EPS. If EPS are not enough to cover the common dividends you have a short fall. Win's earnings per share cannot cover its dividend and this problem has been ongoing. But as the company has repeatedly pointed out cash flows are a better way to guage whether a company can pay its dividend. and as of the most recent quarter Win did not have enough free cash flow to cover the dividend pay out. Hopefully the problem is temporary. Very good point you made about short sellers.
Good analysis John. Pro rate the 200 million in interest savings for this Q and U get 50 million and subtract that from the 87 million the company doesn't have to pay its current dividend and you still have a short fall. Longer term I believe they will work it out but there will be a lot of pain short term.
Lets Look at the latest cash flow statement since Win likes to point out that its free cash flow covers its dividend payout. Cash flows for latest period May 2013; add 000 to numbers below;
cash from operations $304,600
Subtract capital expenditures ( $243,500)
equals free cash flow $61100
minus dividend payout ( $148,100)
equals dividend short fall of; ($87000)
add the zeroes 000 and that 87000 becomes 87 million that the company does not have to pay its current dividend. Maybe the next quarter will be better.
I thought you are suppose to have an independent board.Rotating one board member to another position on the board hardly keeps the board independent and I agree that the latest move hardly instills confidence among shareholders. Management needs a big shake up. Remember Ceo Panditt got fired from Citibank just for the dismal performance of its stock alone.
Winstreams latest move to broaden broadband is a step in the right direction and I hope that we will continue to see innovation from this company.
In fact is very poor. Recent net income for the latest quarter shows a net loss, and for the entire year net income 46 % less than 2 yrs ago.Yet these guys award themselves handsome stock options and U shareholders say nothing? Declining revenue declining profits and net losses and the guys at the front office diluting our equity by issuing more stock. And no one says anythng?