At this point, all my investing is done thru real estate and my 401k. the 401k is all mutual funds and the chance to buy FTR stock.
i dumped my FTR back at the beginning of the year, and it's dropped 46% since. now it's around $5 per share, with a .75/yr dividend. the ex dividend date was back on Dec 7th, and they are due to give their 4th q results on the 30th.
i think it'll drop more. not insider knowledge here, i don't have any non public numbers, and no $$$ figures. no idea what the numbers are, but things don't "feel" good.
on the other hand, i know telecom. land lines are going the way of the dinosaur, but the network always has value. there's the real estate, the built in customers, the rights of way, etc.
as a rural telecom, they have alot of monopoly markets.
and a 15% return sure sounds good.
there's market speculation that the ebitda doesn't support the continued dividend, and that is the only real reason i see for the price drop. revenues are down, but not by that much. i know we have big money dropped in capital and regular expense in maintaining the plant. maybe the books look better when depreciation gets factored in? i'm definitely no accountant.
so, those of you with more market experience, what do you think? at what price would you buy? how low would you need it to go to offset the risk that bankruptcy would wipeout your holdings? or that it would go lower? or is there some other risk i'm unaware of?