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Strategies & Market Trends : Wolfgangrene's charts -- Ignore unavailable to you. Want to Upgrade?

To: wolfgangrene who wrote (1031)	5/20/2015 9:36:10 PM
From: Uncle Whomp	Respond to of 3976

Perhaps an anticipated equity raise is holding down FTR? From the latest CC via Seeking Alpha CEO...."We plan to raise capital to fund the acquisition. We anticipate raising approximately $3 billion in equity or equity-linked securities followed by an approximately $7.9 billion in debt. We have planned our financing such that the resultant capital structure will maintain our current debt ratings. We will be opportunistic in completing our equity and debt raises with the goal of completing them in the Q3 to Q4 timeframe, in advance of the estimated first half of 2016 closing of this transaction."

To: wolfgangrene who wrote (1031)	5/20/2015 9:43:48 PM
From: Uncle Whomp	Respond to of 3976

FTR is paying almost 8% yield. Looks like the market doesn't believe it's sustainable. Reminds me of Seadrill, where the company swore the dividend was rock solid only to cut it the next quarter. One of those times where the chart is trying to tell you something I guess. Anyways this is from the CFO from the same CC.... "We have ample capital to invest in and enhance our competitive infrastructure to service our debt and comfortably sustain our dividend." When Seadrill pinched and spread the pop was small and then it made new lows. Not making a prediction on this one, but I'll be interested to see how it reacts to the pincher formation since I see some similarities.