Srikanth Iyer Windstream Corporation WIN-Q TOP PICK Mar 18, 2011

Own hotels around the world. Super 8, Days Inn and Wyndham hotels. Done an incredible job. Good growth in earnings. Just reported. 16 x earnings. Good job of growing dividend. Bought back stock last year. Done very, very well in terms of managing their operations. There are not enough people yet that follow the story.

(Market Call Minute.) There are a lot of dangers with the stock. They pay a big dividend and it is quite possible the dividend might be cut or eliminated. Revenues have gone way up and debt load has gone way up.

(Market Call Minute) Tricky but you are in a nasty business. Patent litigation is like automatic weapons for killing people. A good company none-the-less and a nice dividend and it will go up at some point.

(A Top Pick July 30/12. Down 15.9%.) (BNN shows Wyndham Worldwide “Up 23.3%”, but our records show it as Windstream (WIN-Q) “Down 15.9%”. I’m using our figures.)

Feb $9 Call Options at $.09? This is like buying a short-term lottery ticket. Not a high risk as the most you can lose is $.09.

Got split off from Allstream. Land line is a very challenging business in the US. Very hard to grow in this environment. He does not like businesses that pay out ALL of their cash flow in the form of dividends.