Small Cap / Telecommunication Services
FairPoint Communications Regulatory Plan Approved
On January 23, 2012, the Public Service Board approved a four-year regulatory plan for FairPoint Communications (OTC: FRP) that “takes an important first step toward ensuring fair industry competition while providing pricing flexibility and protections for consumers.” FairPoint is required to update its regulatory plan every four years and the Vermont Department of Public Service supported the company in its request for regulatory oversight that more accurately reflects the modern telecommunications industry. Under the new plan, which expires in 2015, FairPoint no longer needs Public Service Board approval to offer competitive pricing--a step that, in the past, has taken as much as seven weeks to approve. The new rules also allow FairPoint pricing flexibility on all its services except basic local exchange voice service. Local voice service prices are frozen for two years and then capped after that. Basic rates will continue to be uniform across the state. The new plan also reduces the amount of service quality penalties FairPoint is subject to, to a maximum of $1.65 million per year.
Read More Purchase Recommendation Updates
Identify & Profit from Distressed Investing
Turnaround Investing Blog
In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
Turnaround Letter Stock Pick Named Top Performer of 2017
What Last Year's Top Stock Pickers Are Buying in 2018
This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."
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