This sector is long overdue for a correction. This is going to be bad. Hedge your positions. Every candidate for Whitehouse will champion Medicare refrorm, price control .
Why on earth did they ban Medicare from negotiating prices in the first place ?
I'm counting on Saudi Arabia become a war zone 2016. Oil to $150. ISIL attack killed 15 troopers last week. Hundreds more arrests.
There is no end to this escalation.
They have plenty of cashflow to both pay down debt and pay dividend. And buyback shares. Their infratructure is all paid for. Few capital expense.
The migration to 4G drew lots of customer away from landline companies. This will cease as bottleneck build up on those cells again. Cell providers will bundle their service with landline someday to relief congestion on their network. CTL will be hot property again.
There are not enough cell bandwidth for internet video streaming. The providers have to ally with landlines to take congestion off their network. To draw customers from competing cell providers. . SatelliteTV also need a partner to provide complete package.
I think landlines will be hot property again in 16 or 17.
Sentiment is reaching extremes. bottom fishing time .
Look at Windstream and Frontier. Both went through years of revenue decline. Both are stabilizing. Both repported earnings beat this week. Both pay big dividend, announced share buyback as well as CTL.
Wireless bandwidth bottleneck will force the wireless providers to bundle landline service to the home. That doesn't happen the satellite TV providers will buyout landlines to compete with cable internet TV.
Rockies Express pipeline opened this week. Spectra pipeline to the Gulf Coast and export through Cheniere terminal by end of the year. Obama shutting more coal plant = more nat gas power plant.
Things are finally turning around for nat gas in this country. CHK will be first to benefit. We can get nat gas to $6 CHK will be worth $30. Buying today at $7 is a gift from heaven.
this looks like a good report. 8400 new PrismTV customer. Business data grew 12.5%. At this pace they can actually grow revenue in 2016. This is the only thing thats important. New revenue source outpacing declining legacy business. Dividend is safe . Broadband demand can only increase now that wireless bandwidth is congested. More VDSL more Prism.
At 8% dividend. Its worth a long term hold.
Too early to buy. Wait for $5.