Stock Forum

Discuss value investing stock ideas

 You must be logged in to post
Search Forums:


 






Wildcard Usage:
*    matches any number of characters
%    matches exactly one character

Home Value Stock Idea CTL

CTL
Page:   1  
No Tags
UserPost

12:17 pm
February 20, 2010


Jae Jun

Admin

posts 1336
2

With a company like CTL, you have to look at the dividend growth and why the yield is so high at the moment. I'm not a dividend investor, so I don't know for sure what I'm supposed to look at but I believe the payout ratio has to be considered as well.

You also have to make SURE that the cash from operations can fund the dividends. From the cash flow statement, it looks like the dividends have increased by a huge amount. I don't know whether it is a good sign or not.

CTL spent $25-$30m on dividends between 1999 and 2007 but in 2008 it went up to $220m and $420m TTM.

Looks like the merger increased intangibles, debt, receivables, inventory and everything else. This will require more steady history to get a better idea. Or you have to use a multiples method on this one.

8:36 pm
February 18, 2010


eric_2003

Member

posts 19
1

Hi everyone,

I am trying to understand when is something a deal, when you are weighing a cheap price with high dividend, vs high debt.

CTL is CenturyTel and recently had a merger. Selling just above $30. Dividend is a nice 8%.

Graham value at no growth is 29, at 3% is 49, and at actual growth numbers over the last ten years, 71.

But they have 8.22 billion in debt, and current assets of 1.5 billion. No net net there. They claim 10 billion in goodwill (is this high number unique to telecom?) and 9 billion in property. Total assets is 23 billion. There is a spike in receivables most likely related to recent merger.

Any thoughts on this one?

Eric
No Tags
Page:   1  


About the Stock Valuation Software forum

Most Users Ever Online: 147

Currently Online:
14 Guests

Currently Browsing this Topic:
1 Guest

Forum Stats:

Groups: 4
Forums: 40
Topics: 694
Posts: 3680

Membership:

There are 868 Members
There have been 8 Guests

There is 1 Admin
There are 3 Moderators

Top Posters:

somrh – 273
Graeme – 122
zehua – 96
valueinvestortoday – 75
nell – 67
krackerjack121 – 67

Recent New Members: kalidas, NathanB21, jademan10, romans122, vincentbston, mrpenguin

Administrators: Jae Jun (1336 Posts)

Moderators: Jae Jun (1336 Posts), VANYA (1 Post), djsun (0 Posts)