Stock Snapshot – Frontier Communications (FTR)
FTR: Frontier Communications provides voice, data, internet, and television services to rural areas and small and medium-sizes towns and cities in 24 states. FTR is in the process of obtaining certain rural assets of Verizon after which FTR will double in size and incur more debt. There is a rumor of a 25% dividend cut after the merger.
Risk: You need to further evaluate FTR thoroughly. Well-informed, you decide what to do. Remember that there is risk of loss in all trading. I don’t own any FTR shares. Here are the pluses and minuses.
Closing Price: 7.95 on 5/28/10
52-Week Range: 6.43-8.57, On 5/6/10 the lowest FTR got was 7.25. On certain days during the downturn, FTR would be moving up while the S&P 500 would be moving down.
Ex Dividend: 6/7/10
Pay Date: 6/30/10
+ Quarterly Dividend: $25 per 100 shares (12% yield)
+ Earnings: Second-quarter earnings estimate is $0.14 per share. This is a 53.33% increase over the prior year second-quarter earnings.
+ Free Cash Flow: $0.56 per share
+ Sales: 2,099.8 million trailing 12-month sales
+ Price/Sales Ratio: 1.19
+ Beta: 0.8, FTR appears less volatile than this formal score.
+ Standard and Poor’s Current Rating: 4 stars
– Debt: 4,796.5 million
– PE: 19.88
– Price/Book Ratio: 8.40