Home » Bear Case Scenario » Bear Case Scenario Frontier Communications $FTR, %T, $VZ, $CHL, $S, $BCE, $VODPF

Bear Case Scenario Frontier Communications $FTR, %T, $VZ, $CHL, $S, $BCE, $VODPF

Frontier Communications (Nasdaq:FTR) is one of the most highly shorted stocks. Ponder some of the reasons for a Bear Case Scenario:

Core land line phone business is eroding. It needs to spend serious capital to maintain and upgrade a declining business.

Frontier took on an insane burden with the acquisition of Verizon assets. Verizon had neglected these territories and annoyed the customer. There is no or low loyalty which increases Frontiers risk.

Many of Frontier’s markets are dispersed. So deployment of the latest technology will not be as cost efficient as expected. the asset mix is just not optimal. The logic of wireless technology trumps landline in these markets.

George Gutowski writes from a caveat emptor perspective.