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Frontier (FTR) -1.1% AH after fellow rural telco CenturyLink (CTL) misses Q4 estimates and...

Frontier (FTR) -1.1% AH after fellow rural telco CenturyLink (CTL) misses Q4 estimates and issues light Q1 revenue and 2013 free cash flow guidance. Fitch has downgraded CenturyLink's debt to BB+ from BBB- in response to the company's new $2B stock buyback program, which (though accompanied by a dividend cut) the ratings agency believes will result in lower debt reductions over the next 2 years than it expected. CenturyLink had $20.4B in net debt as of Dec. 31. Shares -13.2% AH.
Comments (3)
  • jpm1jr
    , contributor
    Comments (55) | Send Message
     
    a cynical move by CTL mgt to increase the value of their options at the expense of investors who bought in for the dividend. I've owned my last Telco stock
    13 Feb 2013, 07:24 PM Reply Like
  • mr_dinky_dot_bomb
    , contributor
    Comments (372) | Send Message
     
    FTR has recently been given a lower S&P debt rating of BB- which is 3 rungs into junk. FTR has long term debt over $8.2 billion which is an all time high.

     

    FTR made an acquisition in 2009 for about $1 billion and had about $4.8 bil of debt outstanding at the end of 2009.

     

    FTR looks like it is over leveraged for its declining base of access lines and customers. It will need to focus on lowering costs to match the fast revenue runoff since the VZ reverse merger.
    13 Feb 2013, 07:29 PM Reply Like
  • GonzoOne
    , contributor
    Comments (182) | Send Message
     
    Insider trading at FTR displays a misuse of the rights of management. If ever there was a stock being manipulated by insiders, the acquisition and disposition pattern at FTR might be the perfect display. I own a lot of FTR but will work my way out of it during the next few months. Not at all happy with what I'm seeing. Better to put the money with a more stable and forthright company.
    15 Feb 2013, 11:13 AM Reply Like
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