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No one seems interested in this stock (one post in 2013, and none yet this year), but it reported a slight beat yesterday and is up strongly today. The AT&T deal should be a homerun: accretive to earnings; support for the dividend; adding to customer base; etc.

Wouldn't get in much above $5 at this point, although continued improving performance will be a tailwind.

Best.

BRD
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You're right, this is a sleepy corner of TMF; there just hasn't been much to say! All depends on their execution, which, as you write, looks good based on results and plans.

I'm continuing to hold.

Arch
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Frontier does have a good dividend yield (8.7%).

I'm holding too.

Chuckstick
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Here's a link to an article that Chad wrote about Centurylink that had some insight into Frontier's EPS over the next five years.

http://www.fool.com/investing/general/2014/02/25/3-reasons-c...

Perhaps I should reconsider my stance.

Chuckstick
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That piece basically ignores the AT&T deal, and I think it was written before earnings.

Frontier jumped nearly 11% yesterday on nearly quadruple volume--with a small earnings beat and decent guidance. At current share price (which should drop a bit), it still pays a 7.8% dividend.

I have more than enough of the stock, which has treated me very well in less than a year. But FWIW, I think Frontier is turning the corner and the AT&T deal will be a strong plus.

I do note that the COO has just been named to the FTR Board, which could mean that Maggie Wilderotter is preparing an internal succession. I think she's been a great CEO, undistracted by all the noise, with a long-term turnaround plan that seems to be bearing fruit. Would miss her--but would also trust her judgment on an internal successor.

JMHO, of course.

BRD
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Frontier is like Corning to me - lost me boatloads over the years, I sold them last year at a loss and boom, they start going back up......
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BabaRamDass-

I've had FTR since the spin off from VZ in 2010 and was considering selling. However, your post inspired me to do some more in depth research and decided to wait to see how the AT&T deal transpires.
The dept load on FTR seems to be a major factor with investor confidence and will also play a part in mine.

Chuckstick
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Hi to those out there following FTR.

When I wrote the original post in this thread last year, FTR was @ $5+/-.

It closed yesterday @ $8.19 and is up after hours. Here's the conference call transcript: http://seekingalpha.com/article/2934226-frontier-communicati...

In less than a quarter, FTR has achieved $165 million of the $200 million in cost synergies it projected over 3 years from the AT&T deal.

According to their CFO, the newly announced Verizon deal should more than double their revenue and EBITDA and lower the dividend payout ratio from 51% to 38% in 2016: "On a pro forma basis, we estimate that in the first full year, this will add approximately $5.4 billion of revenue and $2.3 billion of adjusted day one EBITDA. Total new Frontier revenue and EBITDA will be approximately $11.7 billion and $4.9 billion respectively. We estimate that this transaction will be 35% accretive to our leveraged free cash flow per share and lower our dividend payout ratio by 13 percentage points in the first full year."

Dividend increases 5% this year.

FWIW, I think FTR is a terrific long-term investment. They were doing well enough already, but the second Verizon deal is a game changer. It pays not to underestimate a brilliant CEO--i.e., Maggie Wilderotter.

Best.

BRD
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