Opinions
John Petrides
Frontier Communications Corp
FTR-Q
DON'T BUY
Nov 29, 2016
$3.690
Stock price when the opinion was issued
0
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COMMENT
On his Stock Watch list. Pays a lovely dividend of about 8%. Have done a number of takeovers in the past few years, and often have taken over older technology, but you can still make a lot of money on that. He likes the company, but not enough to buy. Has a pretty heavy debt load that you have to be wary of.
He would not be a buyer. People are investing to chase yield. This pays a 11.5% dividend yield and people are scrounging for income anywhere. You are taking on a lot of risk to get that yield. Frontier bought a tremendous amount of assets from Verizon several years ago, and have finally completed the integration. To do that they have taken on a tremendous amount of debt. There are more and more customers that are cutting the cord and are going to over-the-top type of video service.