Send me real-time posts from this site at my email
Motley Fool

Why Frontier Communications Corp. Stock Fell 30% in November

What happened

Shares of Frontier Communications (NASDAQ: FTR) fell 29.8% lower in November 2017, according to data from S&P Global Market Intelligence. It was a tragedy in three parts.

So what

Frontier's difficult month started with a 24% plunge on November 1, triggered by a disappointing third-quarter earnings report. The next week, a Merrill Lynch analyst slashed his price target on the stock from $19 to $4 per share, noting that the huge dividend yield might be unsustainable. The stock got another 15% haircut that day, erasing all of the previous week's recovery and then some. Finally, Frontier investors suffered another 24% setback on November 24, on no real news at all.

Image source: Getty Images.

Now what

Frontier investors are running low on hope, as the regional telecom continues to inch toward the edge of a cliff. The stock has lost 83% of its value in 2017, triggering a 15-for-1 reverse stock split and a drastic dividend reduction along the way. Even so, the plunging stock price has held the dividend yield at a downright silly 27%.

This is not the dividend stock you are looking for, dear investor. Run away and don't look back. Frontier doesn't look like a turnaround candidate in any way, shape, or form.

10 stocks we like better than Frontier Communications
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Frontier Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of December 4, 2017

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Popular posts

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