Send me real-time posts from this site at my email
Mark Holder

CenturyLink: 975 Million Reasons To Buy This Dip

In the matter of a week, CenturyLink (CTL) has gone from surging to $33 on a potential deal with Level 3 Communications (LVLT) to plunging to $23 after paying a large premium for the telecom. The ironic part is that the deal provides more coverage for the dividend (covered here) that is now an incredible 9%. 

The market may not like the premium, but a big part of the ability to enhance the dividend coverage is the $975 million in estimated synergies. 

This massive sell off of CenturyLink was unexpected, but a welcome opportunity to add to a position on the cheap. 

Disclosure: Long CTL

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue