What exactly is your point? Anyone that understands cash flow would realize the dividend was unsustainable at the level set after the VZ acquisition. That has nothing to do with what it is now. There is plenty of FCF to pay the dividend. I'm not worried about it being cut.
Oh my Wyatt do you not realize that what you should be looking at is free cash flow and not EPS? The company is generating about $700M a year in FCF. The Dividend costs $400M/year, leaving $300M in excess cash flow to reduce debt or do whatever. Comparing the dividend to EPS is just wrong considering the large amount of non-cash expense FTR must book. Their will be no dividend cut.
No delisting. They just received an extension until Sept. to get current with financials. I'm hearing they brought in another auditor to get the job done.
Intel At 5x Cash-Flow: We Continue To Believe Stock Is Worth At Least $30 Per Share [View article]
Intel is a massively capital intensive hardware computing business. Why would you even value it based on operating cash flow? That makes no sense to me.
Short interest in OCZ is 22% of float (14M shares). Dtc is 12.1. If they come out with clean financials I have to think the stock is going to punish the shorts. You still short here Austin? I have a 1% long position...just holding until financials are released and the stock bounces (hopefully).
IEC Electronics: Absolutely, Positively A Mess And In Trouble [View article]
Yeah. If you held on all this time it probably doesn't make sense to sell now. Let's hope the BoD cleans house and gets someone in there that can deliver on the promises them make.
Seagate Up A Quick 40%: Substantial Upside Remains, But Is Speculative [View article]
how much are you saying the dividend costs?
Also, the company just borrowed $1B in the last 2 weeks. they have said they won't be buying that many shares this calendar year due to some tax issues. I don't think they get to a 250M share count by the end of 2014 (esp. with the stock price in the $40s) but they should be able to get sub 300M and continue to raise the dividend. STX is just much more shareholder friendly than WDC in terms to returning capital to the owners. Why does WDC need to sit on all that cash? They don't.
Can Windstream Maintain Its Ample Dividend Yield? [View article]
Just look at the free cash flow. In the March quarter they generated a pitiful amount of FCF. One quarter doesn't mean much, but they likely will not have any additional cash flow to reduce debt after paying the dividend each quarter. They should cut the dividend in half if they have any hope of delevering. FTR was smart to cut their unsustainable dividend when the did. They can now delever. I suspect WIN will need to do the same. I wouldn't bet on their new business lines driving additional FCF anytime soon.
I see how WIN is trying to diversify their business, but it is quite costly to do so - with no guarantee it will work. I'll stick with FTR and its slow bleed.
Q1 was pretty bad for WIN from a cash flow basis. They took in $305M (down from $439M in 2012) in cash from operations and spent $235M on that cash for cap ex and other investing activities, leaving only $70M for the dividend. Unfortunately that dividend cost $148M, so they had to borrow the rest. The share count was up again the quarter, adding to the dividend bill. The dividend here looks completely unsustainable considering the high amount of debt. They would be wise to cut it in half while they attempt this transformation. FTR has plenty of excess cash flow to pay down debt. Their revenues aren't gonig to zero. Their business model is sustainable IMO. I'd much rather but it than WIN.
The Dangerous Dividend Trap [View article]
What exactly is your point? Anyone that understands cash flow would realize the dividend was unsustainable at the level set after the VZ acquisition. That has nothing to do with what it is now. There is plenty of FCF to pay the dividend. I'm not worried about it being cut.
The Dangerous Dividend Trap [View article]
How Seagate Will Maintain Gross Margins And Continue To Trade Higher [View article]
How Seagate Will Maintain Gross Margins And Continue To Trade Higher [View article]
IEC Electronics: A Misunderstood Company At A Fraction Of Private Market Value [View article]
2 BioPharma Catalyst Trades And 1 Strong Acquisition Target Rumored To Be In Play [View article]
2 BioPharma Catalyst Trades And 1 Strong Acquisition Target Rumored To Be In Play [View article]
OCZ: Game Over, Part 2 [View article]
OCZ: Game Over! [View article]
Intel At 5x Cash-Flow: We Continue To Believe Stock Is Worth At Least $30 Per Share [View article]
OCZ: Game Over! [View article]
IEC Electronics: Absolutely, Positively A Mess And In Trouble [View article]
Seagate Up A Quick 40%: Substantial Upside Remains, But Is Speculative [View article]
Also, the company just borrowed $1B in the last 2 weeks. they have said they won't be buying that many shares this calendar year due to some tax issues. I don't think they get to a 250M share count by the end of 2014 (esp. with the stock price in the $40s) but they should be able to get sub 300M and continue to raise the dividend. STX is just much more shareholder friendly than WDC in terms to returning capital to the owners. Why does WDC need to sit on all that cash? They don't.
Can Windstream Maintain Its Ample Dividend Yield? [View article]
Frontier Communications: Customer Losses Continue [View article]
Q1 was pretty bad for WIN from a cash flow basis. They took in $305M (down from $439M in 2012) in cash from operations and spent $235M on that cash for cap ex and other investing activities, leaving only $70M for the dividend. Unfortunately that dividend cost $148M, so they had to borrow the rest. The share count was up again the quarter, adding to the dividend bill. The dividend here looks completely unsustainable considering the high amount of debt. They would be wise to cut it in half while they attempt this transformation. FTR has plenty of excess cash flow to pay down debt. Their revenues aren't gonig to zero. Their business model is sustainable IMO. I'd much rather but it than WIN.