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No. of Recommendations: 2
"Beyond Saving", at , now forecasts that UNIT may have to cut its dividend "as early as February" -- having invested essentially all the cash from its revolver loan in acquisitions, and with its cost of capital still very high, UNIT may have no realistic alternative to dividend-cutting in order to finance all of its capex (even the so-called "expansion" part of said capex must be incurred in order to finish build-outs and thus start accruing revenues from already signed lease contracts).

The root of the problem is in good part in the inexplicable delay in the WIN/Aurelius lawsuit's resolution: we all expected it to be done well within the summer, and so, clearly, did UNIT's own management (which is why it did those acquisitions and lease contracts) -- and yet, for no clear reason, it's still hanging at end of year, months later. The lawsuit's favorable resolution is/was expected to cause UNIT's stock price to surge, thus lowering cost of capital by allowing a secondary offering (and maybe leading to a credit rating upgrade, also allowing new lower-rate loans).

So, always-risky UNIT is now getting riskier; caveat emptor. Me, I'm holding, and still DRIPping, but starting to wonder...
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