Jump to content

Frontier Communications (FTR)


Daytripper

Recommended Posts

I'm looking for some high yield stocks to own for at least 2-3 years.  I been looking at Frontier and noticed that Fairfax owned 18.6M shares as of 12/31/2009.  That gives me a pretty good confidence level.  Any thoughts on this company?  Thanks!

 

Tom

Link to comment
Share on other sites

I been looking at Frontier and noticed that Fairfax owned 18.6M shares as of 12/31/2009.  That gives me a pretty good confidence level. 

 

One might have formed a similar confidence level when Fairfax as well as Marty Whitman and other well-known investors were purchasing large chunks of SFK Pulp at prices >$4.00 in 2006.  SFK had a high yield then if i recall correctly.  Here is the chart if you want to take a look at how that worked out over a 2-3 year period: http://finance.yahoo.com/q/bc?s=SFK-UN.TO&t=my&l=on&z=m&q=l&c=

 

Link to comment
Share on other sites

Frontier is a good company in a declining industry.  I looked at this firm (as I like recurring revenue models and live in one of Frontiers largest markets - Rochester, NY) also but found other similarly priced firms with better growth prospects.  Pro-forma the Verizon acquisition, the firm trades 4.3 to 4.6 times FCF and 4.2 to 4.5 times EBITDA.  This firm is in a much less commodity driven industry than SFK.  Given the declining nature of the revenue stream (primarily residential and business access lines), this inexpensive but not cheap.  Other firms who I think are as cheap but also have some growth include SSW, SURW, TWC, CCMM and MCCC.

 

Packer

Link to comment
Share on other sites

  • 1 year later...
  • 9 months later...

Results look great (compared to last few quarters).

 

They are cutting the dividend to $0.40 per year (which probably dissapoints some).

 

I'm surprised the stock is down after hours.  The business is operating better than expected finally, synergies are rising, and they will not we able to term out their debt at the current advantageous rates.

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...