You are not dumb. We just are not privy to the inside information of these deals. Now one needs to figure out the value of the added assets to the potential addition of 500 million shares.
For starters you will have another 150 MILLION shares once the equity offering is closed. That is 15% more share count eating into the dividends to start.
Frontier Communications Corporation (FTR) announced today that it has priced its previously announced registered offerings of $750 million of common stock, par value $0.25 per share, at a public offering price of $5.00 per share, and $1.750 billion of 11.125% Mandatory Convertible Preferred Stock, Series A, par value $0.01 per share (the “Mandatory Convertible Preferred Stock”), at a public offering price of $100.00 per share.
Another 35 percent dilution when the preferred are are converted - "Mandatory".
Recognize any of these company's that recently upgraded FTR?
The joint book-running managers for the offerings are J.P. Morgan Securities LLC, BofA Merrill Lynch and Citigroup Global Markets Inc. and the co-managers for the offerings are Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Mizuho Securities, Deutsche Bank Securities Inc., Goldman, Sachs & Co. and UBS Securities LLC.
Considering getting back in also, however, I (as well as the rest of the market) am concerned how much dilution the $2.5 Billion will have on the float and the cost to the company of the additional dividends. I also have concerns the upgrades may have been designed to sell the offering.
When the FCC (government) starts paying for broadband infrastructure then they can set regulations on net neutrality. The FCC shouldn't be regulating the broadband infrastructure builders whom have spent billions of $$$$ to create that infrastructure as well as paying billions of $$$$ to the FCC for mobile broadband airways.
The FCC stinks as well as other adjectives!
"I think you need to understand economics first, accounting second, and politics third to preform the above. With all that #$%$ said; who in this circus really does?"
Short answer: I do!
And if you think that was harsh you need to thicken your skin.
WBA would not need to part with cash to do this. The assumption of RAD's debt, to include RAD's purchase of PBM EnvisionRX, would be cheaper than financing a buy of ESRX.
Bloomberg on WBA:
The company is making progress in its hunt for a new CEO, it said, without offering details. Former CEO Greg Wasson announced his retirement in December.
Rite Aid, which reported earnings on Wednesday, forecast full-year profit of as much as 27 cents a share. Analysts had estimated 43 cents on average, according to data compiled by Bloomberg."
WBA would gain $26+ billion in sales and obtain an experienced young CEO in: Mr. John T. Standley , 52
Chairman, Chief Exec. Officer and Chairman of Exec. Committee of RAD
I think John has proven he can manage in this space. Just saying....