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Qwest and CenturyTel

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April 22, 2010 – Comments (7) | RELATED TICKERS: CTL , Q.DL2

Haven't read anything about this merger on CAPS, even though we are talking about two $10B companies.

My 2 cents: both are doomed long term. Both get their revenue from the old landline business that is getting smaller and smaller. I am opening a red thumb on both. If you want exposure to the telecom industry, go with VZ or T here in the US. Anyone disagree with me?

7 Comments – Post Your Own

#1) On April 22, 2010 at 1:31 PM, lemoneater (56.61) wrote:

I agree that landline use is dwindling in popularity among those I know. I don't have a landline for a variety of reasons 1) Added cost for zero perceived value since my cellphone is more convenient. 2) Tired of talking to Randy Somebody's creditors who wouldn't believe that the number didn't belong to him any longer. 3) Not wanting to be awakened again by the same drunk lady who likes to call 2-3 am Sunday. Several of my customers have shared that they have gotten rid of their landlines as well.

Unless ATT remarkably improves their coverage and customer service, I would be cautious about investing with T in spite of its generous dividend and iPhone subscribers. When our cellphone contract runs out my husband and I and two other relatives plan to switch to Verizon.

Have a nice day! 

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#2) On April 22, 2010 at 1:47 PM, TMFBabo (100.00) wrote:

I agree and would rather own VZ and T than Q and CTL (although I own none of these).  However, I would argue that red thumbing both CTL and Q when the ticker for Q might disappear is risky.   You might end up with in an abruptly closed red thumb before it has given you a chance to score points on it. 

I know acquisitions take very long to actually close and finalize, but what if the stock price stays steady at the acquisition price for the next 9 months? You would then be at the mercy of mr. market as to whether or not you can even bank positive accuracy, let alone score points.

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#3) On April 22, 2010 at 2:29 PM, Momentum21 (96.53) wrote:

isn't the offer $6 and we never got over $5.53? red thumb to CTL, leave Q alone probably...buy Sprint...: )

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#4) On April 22, 2010 at 2:40 PM, portefeuille (98.93) wrote:

#2 who cares about "accuracy"?

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#5) On April 22, 2010 at 2:55 PM, chk999 (99.96) wrote:

Qwest has terrible service and I hear CenturyTel is bad too. My bet is that CTL is overpaying for Q, so maybe go short CTL if you feel energetic. I don't have enough of an opinion to jump either way.

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#6) On August 20, 2010 at 1:02 PM, Kepo19Taz52Lime (< 20) wrote:

I'm long on CTL for at least a year more. Love that fat dividend. If you fear the worst. put a stop on the stock to protect yourself.

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#7) On October 04, 2011 at 1:06 PM, steve20423 (< 20) wrote:

These comments are great however they seem to be observations a kid could could make.  Not an insult but if you can make them don't you think CTL and Q can make them.

So does anyone know if CTL has a strategy that replaces the more expensive land lines with other technology?  ie preserving their customer base and reducing cost?

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