Tuesday, July 11, 2017

Frontier: Reverse Split Fears Overblown

Frontier Communications completed a reverse split on Monday.
The stock has been absolutely beat up due to this move and a dividend cut.
The market needs to focus back on cash flows.
Back in May, my thought was that Frontier Communications (FTR) was attractively priced below $1.50. My major concern in owning the telecom stock was a lingering shakeout from the dividend cut and reverse split that has the stock hitting new lows now.
Read the full article on Seeking Alpha. 

Disclosure: Long CTL. Please review the disclaimer page for more details. 


Thursday, July 6, 2017

Wells Fargo: Weakest Capital Return Hike For Good Reason

Wells Fargo hiked capital return plans by over $3 billion.
The large bank had the smallest hike of the large banks.
The valuation thesis along with lingering fraud headwinds limit the relative value of the stock.
At a time when most of the large banks approved massive increases to capital returns, Wells Fargo (WFC) had a not so surprising limited bump in capital plans. The end result is the large bank that use to lead the sector in capital returns is now turning into a laggard confirming by previous investment thesis.
Read the full article on Seeking Alpha. 

Disclosure: Long C. Please review the disclaimer page for more details. 

Tuesday, June 27, 2017

Citigroup: No Stress Ahead

Citigroup passed the Fed stress test with flying colors.
The large financial should announce a massive increase to capital returns this week.
The stock remains cheap trading below tangible book value.
Since last discussing the expectations for capital returns and specifically a dividend hike at Citigroup (C), the CFO provided some further details on expectations and the Fed stress tests results were released. The data points pivot towards some big capital return plans.
Read the full article at Seeking Alpha. 

Disclosure: Long C. Please review the disclaimer page for more details. 


Monday, June 12, 2017

The Real Reason Bob Stoops Is Retiring

After 18 seasons as the head coach at OU, Bob Stoops announced his surprise retirement last year. The speculation for the sudden retirement goes from health issues to wanting to spend more time with his sons that are seniors at Norman North HS.



CVS Health: Is The Amazon Threat Realistic?

Amazon continues working on initiatives to explore the pharmacy sector.
CVS Health trades near multi-year lows in part due to the Amazon threat.
The net payout yields offer a positive signal if the e-commerce giant isn't a problem.
CVS Health (NYSE:CVS) continues to trade down towards multi-year lows as weak earnings and fears of Amazon (NASDAQ:AMZN) entering the pharmacy space have weighed on the stock. The company though is raking in billions in free cash flow and returning that cash to shareholders, making the stock appealing on several metrics.
Read the full article on Seeking Alpha. 

Disclosure: No position. Please review the disclaimer page for more details.