EarthLink, Inc. (NASDAQ:ELNK)

12/17

http://alchemistinvestor.blogspot.com/2011/11/earthlink-incelnk-capitalization-rate.html

key2

2.7% annual dividend

Cut their dividend... trying to become a growth stock?

-30% out / in

Dark horse with some major enterprise potential

mfi

buying up everything....good cash flow ....moving into corp. communication technologies, and away from their out dated internet technology..

Loaded with cash and plenty of upside.

Great dividend, low P/E; this business is successfully converting from the old dial-up days, and will increase their companies' value.

Earthlink management seems to have gotten the message 'evolve or die' and they seem to have chosen 'evolve'. Since they're sitting on a pile of cash, they have the means to acquire and I think they will do so aggressively.

Meanwhile, in a slow economy, their current base is not going to be rushing into speed upgrades when their tech remains adequate to their needs. I think ELNK can rely on continued strong revenues while they evolve their business, and I'm betting on them in my 'real' portfolio as well. I just can't walk past a 7%+ divvy, either.

with dividend yield 3x higher than s&p, and p/e only 3, which is five times lower than s&p's 16, this stock will easily outperform.

People might say that dial-up is dead, but this company has branched out. It is no longer completely reliant on dial-up to produce the entirety of it's revenue. This company is paying a 7.44% dividend with a payout ratio of only 24% (compared to 32% at XOM or 48% at MCD), has a P/E ratio of 3.33, it has enough cash to cover it's TOTAL LIABILITIES twice over, and did I mention the 7.44% dividend? This stock isn't going bankrupt in the next year or two, but it's priced as such, hence the outperform call.

8/18/10 screener shows this among my top 4 for debt, roi, dividends, even though skeptics say dial-up is dead.

Dial up is done.

There were 50 items in your list. Here they are in random order:

ELNK - 1
USMO
TSRA - 2
HRB - 3
NSR
GME
OSK
DLX
FWLT
PPD
CBI
SOHU
IDCC
KIRK
SOLR
CBPO
VALU
PDLI
APOL
ENDP
IMMU
LO
CSKI
AMED
CNU
GXDX
PRSC
DRWI
AFAM
JCOM
CYTK
UIS
IPXL
FRX
MHP
CHKE
VPHM
RTN
COCO
TNDM
RGR
CHOP
ARO
LHCG
UEPS
MRX
GRMN
UNTD
TTT
EME
Timestamp: 2010-07-07 15:55:54 UTC

though a dying business, dial up generates a nice cash flow and a hefty dividend makes this old horse worth a few more seasons in the fields.

I believe that the valuation is similar to where we were in late 2000 and there may be a run-up similar to that from late 2000-2001. I believe it is very unlikely to fall much further than where we currently are.

Granted their total liabilities is a bit higher than I would like in comparison to their current assets.

The ~6.5% yield makes this an attractive buy-and-hold position (Although there has only been a dividend since mid-2009 and it very well could go away).

The latest lawsuits I believe will harm earnings slightly, but not enough to be very significant.