Lumen Technologies: Why I'm Holding My 10% Yielding Notes

Jeremy LaKosh profile picture
Jeremy LaKosh
5.09K Followers
(6min)

Summary

  • Lumen Technologies is experiencing a share price surge driven by AI technology demands, despite a decline in third-quarter revenue and EBITDA.
  • The company's operating cash flow surged to $3.6 billion, driven by deferred revenue from AI-related sales, leading to $1.3 billion in free cash flow.
  • Lumen has restructured debt, reducing long-term debt to $18.6 billion, and engaged in a tender offer to address near-term maturities.
  • I am holding onto my shares and 2028 notes, expecting Lumen to become a sustainable free cash flow generator.

Digital information

Ramberg/iStock via Getty Images

Introduction

Lumen Technologies (NYSE:LUMN) is a telecommunications company experiencing a share price surge due to the demands associated with AI technology. Back in September, I wrote about the company's latest debt exchange offer. Prior

This article was written by

Jeremy LaKosh profile picture
5.09K Followers
About My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds.  I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.

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.

I own Lumen debt maturing in 2028 and 2039.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About LUMN Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on LUMN

Related Stocks

SymbolLast Price% Chg
LUMN
--