Tuesday, January 31, 2012


Frontier (NASDAQ: FTR) is keeping people up and night I'm sure. Here's the recent news, it took a beating the past couple of weeks, the talking heads keep saying dividend cut imminent, FTR is the 5th most shorted stock on the NASDAQ, volume has been through the ceiling, the company moved up it's earnings release, and I bought more.

Here's why I'm still a believer, even if the dividend were cut by a quarter, it would still yield about 12% down here, the board said about 30 days ago they are committed to paying the dividend, they're diversifying the business, when they digest the Verizon assets the financials will stabilize, this is all speculator driven and something we have to be willing to tolerate in today's market. That's why we have to be willing to hold a couple of years.

I don't think we're sitting on a bomb. I do think that much rests with the dividend decision, because when you're short, you have to pay that dividend and that's a lot to pay to keep the short on. I'm holding and have no problem sleeping, as it's part of the portfolio and not the whole thing, and because I believe the company will come through. BTW, it's usually a good sign when the company moves up the reporting date.


Friday, January 20, 2012

The fog may have lifted

Sorry for the absence. Looks like the sun wants to shine on the market again. Some of our MP losers have come to life. People realize solar isn't dead, but we've still got a suicide watch on Frontier (FTR) and Novatel (NVTL).

Our side bet on BofA (BAC) at around $5 has paid off, but we're not ready to sell yet. We still have to get our MP picks together in a table. One more note, look at Vivus (VVUS). More to come


The Vix

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Where we rant and rave about the market and of course give our opinions on stocks we love or hate. We're not advisors and urge you to conduct your own due diligence.

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