Lumen Tech.: Trade Offs

Summary

  • Lumen Tech. reported Q2 sales fell 5% YoY.
  • The telecom has announced two asset sales at attractive valuations, but the lower cash flow profile of the remaining assets could require a future dividend cut.
  • The stock is cheap at less than 5x EV/EBITDA targets, but the asset sales don't solve any problems with declining sales.
  • Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More »

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Lumen Tech. (NYSE:LUMN) collapsed following the release of Q2 results and multiple divestiture deals. While the telecom appeared to obtain solid values for the announced deals, the market is focused on the lack of

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of LUMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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