Rob Clancy wants the stock price to be much higher just like the other officers. Their comp plans include stock compensation and I'm sure many of them don't like the current price. Neither do I and this is my largest position. They can't control the price and certainly can't pump up the stock with news that will not have a material effect on the companies bottom line. I think this stock just has no following, therefore no bid for the common stock. It probably won't change until Windstream proves it
can generate continued cash flow or growth that will support the lease. This may take a year or two so patience is required. Collect the dividend and wait for some institutional buying. Also, they can't make many deals with this depressed stock price. Yes, they have the 500 mill line of credit but that isn't going to get them any big fish.
At the current dividend rate your investment would be recouped in 7 years or less. If Win went bankrupt in year 7 you would still own all the physical assets. I think it's well worth the risk
Think about this: Citicorp is willing to give somewhere around 600 million for WIN shares. I don't think citi would be doing that if they thought the dividend was in jeopardy or the equity wasn't going to improve on price. Citi also will be planning on holding the shares for sometime which will remove the potential of continuous selling pressure from WIN shares. WIN will be down to 3% holdings which will also remove the threat to other competitors who might be looking to CSAL for a deal but were hesitant with WIN holding such a large percentage. I think it might be time to load up
The sell off is due to the recent filing.. In the Spin-Off, Windstream Services retained 29,385,064 shares of our common stock. In connection with this offering, 21,293,525 shares of our common stock (or 24,487,553 shares if the underwriters exercise their over-allotment option in full) held by Windstream Services will be exchanged by Windstream Services in a debt-for-equity exchange with Citigroup, as the selling stockholder. See "Selling Stockholder."
Windstream Services will exchange such common stock with Citigroup, as the selling stockholder for debt obligations of Windstream Services held by the selling stockholder. The selling stockholder will then sell the 21,293,525 shares of our common stock (or 24,487,553 shares if the underwriters exercise their over-allotment option in full) to the underwriters for cash for distribution pursuant to this offering. This debt-for-equity exchange will occur on the closing date of this offering immediately prior to Citigroup's sale of the common stock to the underwriters. We refer to this exchange as the "debt-for-equity exchange." Upon completion of the debt-for-equity exchange, the debt obligations received by Windstream Services in the debt-for-equity exchange will be retired. This will yield debt reduction by Windstream Services of approximately $ million (or approximately $ million if the underwriters exercise their over-allotment option in full).
It's hard to believe there are few takers but time is on our side. I read the stipulations of the lease very clearly and CSAl is protected to the greatest extent possible in the event of bankruptcy etc. In fact, the dividend would have to be suspended at WIN before they could even consider default on the lease obligation. I'm betting 15K shares that the yield is sustainable and will be reflected in the stock price over the next 1-2 years. In fact, at these levels, even the threat of higher interest rates is diminished. Good luck gang..hope I'm right?
I think the low bids here are getting a deal because the spin off created so much confusion for the income investor on the street. I've been personally buying what I can under $ 29.00 getting the 8% plus yield while I wait for the crowd to clear out and the funds start to come in to balance their portfolios.
plenty of free cash flow to pay the rental agreement and if earnings suffer going forward Win would have to cut their dividend before not paying the rent on the assets. Without the lines and assets there is no windstream
I'm thinking the same that the money managers took the 44 cent pro-rated div news and assumed it was yearly. Scary if it's true but good for those that want 8%+ yield
The news I was hoping for...confirmation of $2.40 annual dividend. Now yielding 8.25% at 29 and change. Just bought some more. Win signed a contract for 5 years for 650 million in lease arrangements with triple net lease. I think Win will be around for a while especially with their reduced by 50% debt. jmo