Out Fox The $treet

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. 

Summary Frontier Communications has a capital structure too focused on maintaining a historical dividend. High debt load causes interest expense to hit operating income. Stock is reasonably valued but the large stock gains leave limited upside from these levels.  Reviewing the recent results of Frontier Communications (NASDAQ: FTR ) and the capital structure just doesn't make sense. Sure the local communications provider has stable revenues and cash flows that provide a level of opportunity, it doesn't make any sense for the company to continue paying lofty dividends while under a large debt burden. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.