Been looking at CenturyLink.

A great Louisiana company that has been growing by leaps and bounds for a long time.

Is this a good long-term stock?

As of May 5, they are selling at $35.51. Over-priced or a good buy?

Paying 6.10% dividend

What say the Money Board experts? TIA

LINK

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Posted by Iowa Golfer

Heaven

Member since Dec 2013

10230 posts

Posted on 5/6/15 at 6:55 am to Reubaltaich

I've been looking at it for a long time. They carry a lot of debt. I basically view this as a utility. I think analysts and financial advisers consider this a growth stock, but I'd disagree. They are without a doubt a cash flow game, and at this point have free cash flow to make it a viable ongoing company, although insiders activity hasn't been extremely positive.

I'm a customer. They have horrible employees, and must treat them poorly. Much like they treat their customers. That's neither here nor there, but something I take note of.

I honestly don't know what to do, and based on trend I follow the basic rule of not fighting the last tick. The last tick(s) haven't been good. For quite some time now.

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Posted by nelatf

NELA

Member since Jan 2011

2296 posts

Posted on 5/6/15 at 9:24 am to Reubaltaich

When I try to digest the financials, the debt load is real...just as IowaGolfer stated. It appears they have done a good job of moving to low rate debt products because their interest expense is low relative to their debt.

I would not buy because it is a Louisiana company and I would not buy on yield. The utility company portion of the company has to be viable long enough for emerging businesses in the company to take root and grow.

Buying it for the land line income stream is a risk. That said, management has never had a major slip up that I know about - that speaks volumes for future positions.

You are buying an old revenue stream that is being used to build a new business. If anyone can do that, I think CTL can.

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Posted by tigeraddict

Baton Rouge

Member since Mar 2007

11812 posts

Posted on 5/6/15 at 9:56 am to Reubaltaich

They just completed a major construction project in Monroe, and i heard IBM is building a facility right across the road from that location. From the CenturyLink website, says the new office building was a 250,00 sq ft building for 800 employees

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Posted by Reubaltaich

A nation under duress

Member since Jun 2006

4967 posts

Posted on 5/7/15 at 5:12 am to Iowa Golfer

quote:
They carry a lot of debt

Lots of debt from acquistions? When a company has lots of debt, that does raise a few flags.

I am somewhat of a homer, as there are located near my home. I have watched them explode these last 15 years. Are they growing too much and taking on too much?

Don't know about their customer service though. Perhaps thats something you should forward to the higher ups. That could get some of your issues resolved.

Thanks for all you other guys input as well.

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