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$36.38 -1.61 (-4.24%)
1/9/2009 4:00 PM

Embarq Corp (EQ)

CAPS Rating:
**

Provides, both directly and through wholesale and sales agency relationships, a suite of communications services, consisting of local and long distance voice and data services, high-speed Internet access, CDMA-based wireless and satellite video services.

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Recs

3

Avatar NeroSagetrade (48.63) Submitted: 10/11/07 6:40 PM : Underperform Start Price: $52.40 EQ Score: -12.13

If you look at the balance sheet here, your glowing recommendations that Embarq is a great company will quickly be disspelled. Yes, that is NOT a misprint, they have SIX BILLION dollars in debt. I have absolutely no timetable to explain just how incredibly long it would take to pay off that massive amount of debt or just how much exposure they have to any interest rate flubs/issues. As if that wasnt bad enough and it wasnt trading at 275 times book value, revenues are declining here in 2007 and they look likely to decline in 2008. The business is stagnant and yet the stock is up 40% in the past two years, none of that makes sense to me. The technicals are finally rolling over as the uptrend is broken and this looks like a solid bet to lose to the S&P over the next few years.





Nero


Sagetrade

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