Anthony Parsons

Long only, deep value, value, growth at reasonable price
Anthony Parsons
Long only, deep value, value, growth at reasonable price
Contributor since: 2012
Good discussion. Only time will tell what CBB will do but I think we can all agree that we would like to see an increase in CBB share price.
I am an accountant and I understand what a NOL is. They can be carried forward for a minimum of 20 years. The hard part with NOLs is getting to carry them back, not forward. A spin off would be tax-free to shareholders provided that CBB could get approval for that, which most spin-offs receive.
If you are saying that the only way that CBB is going to be able to use its NOLs over 20 years is by selling the CONE shares at a gain, then the need for a spin off of CONE to CBB shareholders is even more glaring. NOLs are good for tax planning but if CBB cannot use them up by generating profit on their stand-alone business in future years, CBB stock won't go anywhere.
Please explaining your "managing profits of CONE" statement. Perhaps there you are seeing an added advantage that I am not.
You're welcome!
I have followed this stock and PBR for a long time. The preferred and common shares on most days closely mirror each other. In PBRs case the preferred shares trade higher cause the dividend is way higher, or was this year at least. But only about $1 higher per share, same kind of discount there pretty much. There is no clear answer I have for you other than if I added more to my positions it would be in the preferred shares.
Because preferred really means preferred in this case IMO.
I believe the dividend in total is the same, hence the yield is higher with preferred shares.
I disagree. If cbb gave cone shares to shareholders, the value of the remaining cbb shares would be way higher than what cbb is worth now if you subtract cone shares. A telecom company nearly breaking even is worth way more than pennies, or even $2 per share. I think management is holding back for one reason or another. Plus, like you said, the turnaround story remains. Especially after they are finally rid of loss leader wireless.
Based on cbb share price, it needs to do this to unlock value for shareholders. Isn't that what its all about?
Spinning shares to cbb shareholders is simply putting the shares in their owners' hands anyway. That isn't the same as selling the shares. They can work around the debt covenants. I would rather take my .13 or so shares of cone for each share of cbb in my own account. Wouldn't you? It isn't like cbb pays a dividend. Regardless, I see that cbb is undervalued because of cone holdings.
With Cyrus One at about $26 per share, at some point I think Cincinnati Bell management is going to have to consider a spin off of these shares. It is in the best interest of shareholders to have this value unlocked in my humble opinion.
These stocks are all significantly undervalued in my opinion. The fact remains that they are far from their all time highs and I believe that all of the potential they showed during their price run up before is still there.
It has a long way to go, look at what its all time high is.
Thanks for the feedback, I enjoy writing articles and am looking to continually improve.
Russian equity prices may have a long way to rise from here.
Of the BRIC countries, Indian share prices have been big winners. Now its time for Brazil to join the party.
Good point, I think that dividend increases would continue as scheduled regardless of whether or not merger completion takes longer than expected.
Furthermore, looking at their respective market caps, AT&T looks to be able to handle a buyout of both companies.
The taxes are not that complicated for it. We will end up with a cost basis that the brokerage firms will likely figure out for us.
Nothing you said there is based on any facts whatsoever. Its ludicrous to think that AT&T would dump DTV for VOD and also to say you know where the share price would go if the deal does not go through.
It's hard for me to want to commit new money to the stock market right now but I do believe this rally could still have a long ways to go.
I love Altria, I think it will benefit. Long MO.
.0373 is 3.73% of the company, not .0373%.
.0373% = .000373. My percentage is right and it is .0373% not .000373 that I was referring to.
You're welcome pagreen1966. Thank you for the compliment.
You're welcome Bill.
Great article. And here I thought that Whole Foods was pretty much the only worthy player in this market.
Michael, thanks for the compliment. I made the chart a two year chart so that I did not get readers into tunnel vision as far as only looking at 52 week returns. I wanted to expand the time horizon to show what the stocks have done in the past two years for the example. Taking it out two years paints a different picture than showing the 52 week price change. This further makes my point that I want a potential investor to conduct their own due diligence on the stock without just getting excited about it by seeing it in this article.
Steve, according to this report by AP, the dividend will be paid to shareholders on record as of 12/17/12
I don't know if that means before trading starts or as of the end of the day. For dividends, the morning the stock trades ex dividend, the stock price will go down by the amount of the dividend, all else being equal. If you are in before this, ie the day before, you will get the dividend even though the settlement date might be later.
If I were you, I would ask my broker but they might not know. I would wait for the stock to open on Monday and see if it is trading $4 lower per share, which it should once the time has passed to receive the dividend. If it does not drop by that amount on Monday morning, I would say you will get the dividend. Don't quote me on that though, that is just what I would do if I wanted to buy the stock.
Rwisner, thank you and you're welcome. The dividend payout ratio is 80% if it is based on the full year analyst consensus earnings estimate. My short answer is that yes I think the dividend is safe. My detailed analysis of this will be coming in an article soon. Stay tuned.
I meant selling a covered call to gain the proceeds. My mistake, good catch.
And thanks Mike, I am glad you all are enjoying the article.