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.
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.