As I have done for almost 50 years.
Who knows, maybe the last quarter I can get shares at less then $5. The last few years has seen FTR's PPS at this level, so its been a good time to dollar cost average down.
Why do you think so many people are selling today?
Sorry franzmuller, but 30 million shares traded by mid-day on an 8% gain is scant evidence of selling.
As the big players (T and VZ) continue to divest of their landline business, FTR is picking up the pieces.
Commercial business, HSI, data backhaul, home security, and video services are being relied on to stop the revenue declines and grow the business.
WIN and CTL (the other two large companies in the landline industry) have made big plays in data, cloud, and wireless. Some see this as one of FTR's shortcomings. Time will tell to see if this is the case. I'm wondering how WIN and CTL are going to compete with the likes of T, VZ, IBM, GOOG, AMZN, Rackspace, etc. in the data/cloud arena. This is fast becoming a commodity and priced accordingly.
All that glitters is not gold.
I've been averaging down through dividend distributions in the sub-$5 range.
With the T-CT deal and recent FCC ruling on net neutrality, FTR should be able to move north a buck or two.
Many posters slam FTR's deals, but every one of them has been integrated successfully.
No Hawaii Telecom or Fairpoint here.
Some of this is true, but FTR is faced with the same thing as all other landline based telecoms.
The question is can these operate profitably?
Can FTR operate at a lower cost basis? Is there sufficient business to keep it running? Are there other business opportunities FTR can offer its residential and business customers?
If you bought in at $9 it will be tough to make back the difference, unless you are willing to lock up the money for at least 5 years.
No one is happy with the current share price, but the market is setting it there.
If you can acquire shares at a lower cost through quarterly dividend distributions then this brings overall cost basis down.
I've been in this game since 1965 anf my investment in FR has done well.
Geesh....cry me a river.
Haven't you ever been through a buyout before?
Some older T employees will no doubt retire, while the vast majority will stay on and work under the FTR banner.
Its a little tough to stomach all this nostalgia when T just sold you to the highest bidder.
In 2010 FTR tripled in size with the VZ acquisition. They will grow another 25% with the T buy in CT.
It is reasonable to expect that a few senior level executives would need to be added to manage the larger firm.
Ms. Lem was no doubt chosen from a larger pool of applicants as the superior candidate for the job. She is well educated, is a CPA, has extensive relative experience, and I wish her well in her new position.
Then Again FTR is taking on more debt.
So how do you suppose VZ is going to pay for the 45% of the wireless business that they don't own? Cash on hand? VZ is already sitting on $100 billion in LT debt
NEW YORK (AP) — Verizon will own its wireless business outright after agreeing to a $130 billion deal to buy the 45 percent stake of Verizon Wireless owned by British cellphone carrier Vodafone.
Will they be able to maintain their investment grade rating?
CTL is down 30% over the past year, or roughly $8 billion in market cap.
Long time CEO Glen F. Post III was paid a combined $14 million last year according to Forbes.
WIN is down 25% over the past year, or roughly $2 billion in market cap.
Long time CEO Jeffery R. Gardner was paid a combined $6.4 million last year according to Forbes.
FTR is essentially even over the past year, so no change in market cap.
Long time CEO Maggie Wilderotter was paid a combined $3.2 million last year according to Forbes.
FTR's and WIN's market caps are very similar yet Maggie's salary is half what Jeff Gardner's is, and FTR has performed better over the last year.
The T buy is a good one, and there's more than a little international unrest these days.
Investors may want to bring some of their $$$'s home.
, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (FTR) announced today that it has entered into a definitive agreement with AT&T, Inc. (NYSE:T) to acquire AT&T’s wireline business and statewide fiber network that provides services to residential, commercial and wholesale customers in Connecticut. As part of the transaction, Frontier will also acquire AT&T’s U-verse video and satellite TV customers in Connecticut. Frontier will pay AT&T $2 billion in cash for the business and related assets. Frontier’s extensive experience operating local and national communications networks and providing communications services to residential and commercial customers throughout the country will contribute to the success of this transaction.
Frontier’s shareholders, customers, local communities and employees will benefit substantially as a result of this transaction:
• The transaction is estimated to be accretive to Frontier’s adjusted free cash flow per share in the first year.
• The transaction is estimated to improve Frontier’s dividend payout ratio by more than 5 percentage points in the first year.
• The all-cash transaction means Frontier shareholders will receive the benefit of increased diversification of assets and operations without any dilution in ownership.
• Frontier will have greater scale to leverage its network, information technology, engineering, administrative services and procurement capabilities to realize cost synergies and savings of $200 million annually once integration is complete.
• Frontier will implement its proven local engagement community-oriented go-to-market strategy in Connecticut led by local General Managers and a State Leader.
• Connecticut customers will have the same products and services that they currently enjoy, including the U-verse suite of products.
Maggie Wilderotter, Frontier’s Chairman and Chief Executive Officer said, “We are excited to be acquiring AT&T’s wireline operating company in Connecticut, where our company has been headquartered since 1946. This is a great opportunity to bring to Connecticut Frontier’s portfolio of products and services, such as Frontier Secure, our industry leading digital security offering that gives customers top-rated online computer protection and premium technical support. It also allows us to introduce our local engagement management model to Connecticut in which Frontier employees provide high-quality service to their friends and neighbors and become actively involved in their communities.” Wilderotter added, “We see an opportunity to enhance broadband capabilities in Connecticut. This transaction demonstrates our continued commitment to enhancing shareholder value by improving the sustainability of our dividend, increasing our free cash flow and building on our core product and service strengths.”
Randall Stephenson, AT&T’s Chairman and Chief Executive Officer said, “We are very pleased to have Frontier Communications as the buyer of our Connecticut wireline properties. Frontier has proven both its ability to execute sizeable transactions and a commitment to the communications needs of urban, suburban and rural markets. Frontier has a strong track record of providing high quality service, and we look forward to them doing so in Connecticut after we close this transaction.”
Dan McCarthy, Frontier’s President and Chief Operating Officer, commented, “We welcome Connecticut to the Frontier family and look forward to bringing our high-touch local engagement management model to our home state. We have deep experience in acquiring and migrating large-scale operations onto our networks and systems, adapting them to our sales model, and extending our brand into new communities. AT&T’s Connecticut business is substantial, well-defined and covers nearly the entire state. Based upon our track record, we are extremely confident that we will leverage this opportunity to deliver an excellent customer experience and shareholder value.”
Additional Details on the Transaction
The transaction is subject to review and approval by the U.S. Department of Justice, the Federal Communications Commission, the Connecticut Public Utilities Regulatory Authority and other state regulatory authorities. Frontier expects the transaction to close in the second half of 2014. Following the close of this transaction, Frontier will operate in 28 states. Connecticut’s urban, suburban and rural markets will complement Frontier’s diverse mix of markets. Frontier will welcome approximately 2,700 employees to our company; the majority are represented by the Communications Workers of America. Frontier already has more than 200 employees at our headquarters based in Stamford, Connecticut. A full conversion of AT&T’s Connecticut operations onto Frontier’s existing systems and networks is planned at the time of close. Frontier has successfully completed numerous complex system and network migrations. Our most recent conversion covered operations across 14 states and was completed approximately one year ahead of schedule.
Frontier will acquire approximately 415,000 data, 900,000 voice, and 180,000 video residential connections of AT&T in Connecticut, as well as AT&T’s local business connections and existing carrier wholesale relationships.
Frontier will pay $2 billion in cash for AT&T Connecticut. The business will be transferred on a debt-free basis. J.P. Morgan has committed the financing required to complete the transaction.
Must admit I didn't think FTR would be in the market so soon for an acquisition.
Conn. property is robust and heavily invested in capex by T, so FTR will not need to spend a lot. Geographically it no longer fit well for T and its in FTR's backyard, so it makes good business sense.
Same conversion team in place as VZ, so should go smoothly.
Getting the vibe that FTR feels burnt by VZ and is establishing good relationship with T for future. U-verse offers good service platform as it uses DSL. Some talk of converting existing FIOS customers over to Uverse.
Agree, but read the CC transcript. FTR is going to do more business with T down the road. Uverse works on DSL. FTR is very interested in this. they may migrate FIOS customers to Uverse if it works as well as they think it will.