Imminent Short Squeeze: Frontier Delivers What No One Thought It Could

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About: Frontier Communications Corporation (FTR)
by: Glen Bradford
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Glen Bradford
Value, growth at reasonable price, long-term horizon, portfolio strategy
Summary

Frontier made roughly $360M of operating free cash flow last quarter and trades at a market capitalization of less than that on blowout earnings.

The company's Q4 2018 beat my estimates and it beat everyone else's that I've spoken to, and analysts haven't really upgraded the price targets.

~50% is sold short, and I figure that the investment banks that put out the price target reports may have exposure or paying clients with exposure.

Frontier's management team is confident it will refinance debt on the back of growing EBITDA.

Did I mention that the stock is still priced for imminent bankruptcy when that's years off and by then you'll have a growth story?

Frontier Communications (FTR) announced Q4 earnings and beat my expectations. EBITDA grew quarter to quarter. There's a good chance Q1 2019 shows an increase of revenue on Q4. This company, meanwhile, is priced