Earlier this winter ago I came right out and said that an investment in Frontier Communications Corporation (NASDAQ:FTR) was absolutely indefensible. The stock now sits at a 52-week low. Now I will be clear and tell you that his has been a stock that I have been following for a while. For a long time prior to this absolutely correct call, I had worries over the company’s dividend, and sure enough, it had been cut over time. Back in the fall I told you plainly that the loss of customers was unsustainable, and I reiterated this sentiment when I called an investment in the name indefensible. Things have gone so poorly the company will do a 1 for 15 reverse split. Reverse splits are a kiss of death. Take a look at 99% of companies that have reverse split. The company does not seem to care.
According to Frontier Communications Corporation management, the company will implement its 1-for-15 reverse stock split of the issued shares of common stock as of the beginning of trading on Monday, July 10, 2017. Following the reverse stock split, Frontier common stock will continue to trade on the Nasdaq Global Select Market under the symbol “FTR,” although it will have a new CUSIP number (35906A 306).