June 5, 2015 Frontier Communications is offering a Corporate Bond that pays over 7%. The maturity is 2021. If you want to pay over $1000 per bond and hold to maturity this is a good buy. It is possible to buy as few as two bonds.
Adding to the recent positive commentary about Frontier Communications (FTR), Raymond James has lifted its rating to “Outperform” from “Market Perform” and set a $6 price target.
The stock opened lower Thursday at $5.36 but was regaining ground in early trading. Despite a lift from its late-May 52-week low of $4.90 in the past week, the stock is still down 20% year-to-date and boasts an outsized yield near 8%.
Raymond James analyst Frank Louthan writes Thursday:
We are upgrading shares of Frontier to Outperform from Market Perform as we believe the risk/reward in owning shares has shifted following the stock’s sell off in May, creating a buying opportunity for investors. With Frontier launching its equity offering this week, we believe the stock can be rewarded on its expected operational improvements.
Frontier announced Tuesday it is raising $2.5 billion in equity to fund its purchase of Verizon wireline assets in three states. Analysts believe the high dividend payout will be more secure following the purchase.
In her “Barron’s Take,” Johanna Bennett recommends investors buy the stock for it’s enticing yield. (See, “Frontier: It’s Time to Lock in the 7.7% Dividend Yield.“)
D.A. Davidson analyst James Moorman upgraded the shares to “Buy” on Wednesday, but lowered the price target to $6.50. Also that day, Wells Fargo analyst Jennifer Fritzsche made positive comments about the Verizon deal’s potential to add to free cash flow. Last week Frontier scored a “double upgrade” from Morgan Stanley. Analysts bypassed neutral and went straight from “underweight” to “overweight.”
I noticed an article on one of our holdings CEFL in seekingalpha.com. (CEFL is giving us good dividends but the Total Return is still negative. HOLD)
In the middle of this hard to read tome, I found some really interesting copy on the jobs market…..it is pasted below. You don’t hear this stuff in the liberal media.
Critical to this analysis is the question of why labor force participation has declined so much. The decline in the economy caused many to become discouraged and cease looking for work. Why they have not rejoined the labor force as the economy has improved since 2009 is another issue.
There are a number of reasons why people have not rejoined the official labor force. However, either due to political correctness or a true lack of understanding, many have not focused on the “elephant in the room” reason for why many prime-working-age men have left the labor force. That reason being that they have taken up the fastest-growing occupation in the USA. That is making dubious and fraudulent disability claims.
In retrospect, not extending unemployment insurance after the 99-week benefit period provisions expired may have been a mistake. Many of those whose benefits were exhausted responded to the multitude of advertisements by lawyers urging them to apply for what essentially were dubious and fraudulent disability claims. The government now effectively must accept any claim of disability and the government also must pay the legal fees of those who file for disability benefits, hence the massive advertising by the lawyers.
GW Bush was one of the worst Presidents in history. But now Obama is polling even lower. You can’t make up this stuff:
A CNN poll released Wednesday shows that George W. Bush is not only more popular than President Obama, a majority of Americans now view the former president in a positive light. A full 52% see Bush favorably, compared to just 43% who do not. Only 49% of Americans have a favorable opinion of Obama. The same number, 49%, do not.
Obama’s job approval numbers also took a serious dive in the CNN poll. Just last month, the president sat at a 48% approval rating, with just 47% disapproving. Not great, but he was at least above water. Today Obama is upside down a full 7 points, with just 45% approving of his job and a clear majority of 52% disapproving.
Do not buy any positions mentioned here until you view Current Positions.
Go To Core Portfolio Click Here.