QUOTE AND NEWS
Benzinga  Oct 20  Comment 
Anacor Pharmaceuticals (NASDAQ: ANAC) shares jumped 5.96% to reach a new 52-week high of $27.18. Anacor Pharma's PEG ratio is 0.66. Consolidated Communications Holdings (NASDAQ: CNSL) shares rose 1.68% to touch a new 52-week high of $26.91....
SeekingAlpha  Sep 30  Comment 
By Investor Protector: Industry Headwinds/Competition Up until about 3 years ago, Consolidated Communications (NASDAQ:CNSL) was a local exchange company (LEC) concentrated on providing communications services to residential and commercial...
Cloud Computing  Aug 19  Comment 
Enventis Corporation (NASDAQ: ENVE), announced it has established a record date and a meeting date for a special meeting of its shareholders to consider and vote upon a proposal to adopt the previously announced merger...
Cloud Computing  Aug 11  Comment 
NEW YORK , Aug. 11, 2014 /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P MidCap 400 and S&P SmallCap 600 indices: read more
Market Intelligence Center  Aug 5  Comment 
For a hedged play on Consolidated Communications Holdings Inc (CNSL), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jan. '15 $22.50 covered call for a net debit in the $21.52 area. That is also the break-even stock...
SeekingAlpha  Aug 1  Comment 
Consolidated Communications Holdings Inc. (NASDAQ:CNSL) Q2 2014 Earnings Conference Call July 31, 2014 11:00 AM ET Executives Matt Smith - Treasurer and VP Bob Currey - Chairman and CEO Steve Childers - CFO Bob Udell - President...
SeekingAlpha  Jul 28  Comment 
By Eamon Trebilcock: In the following article, I will provide three income stocks with both strong dividend yields and capital appreciation potential. For these stocks, I focus on EPS Growth, Cash Flow Growth, Earnings Growth, Revenue Growth, and...
DailyFinance  Jul 7  Comment 
Levi & Korsinsky is investigating the Board of Directors of Enventis Corporation (“Enventis” or “the Company”) (NasdaqGS:ENVE) for possible breaches of fiduciary duty and other violations of state law in connection...
Benzinga  Jul 2  Comment 
In a report published Wednesday, D.A. Davidson & Co. analyst Donna Jaegers reiterated a Neutral rating on Consolidated Communications (NASDAQ: CNSL), and raised the price target from $19.00 to $20.00. In the report, D.A. Davidson & Co. noted,...
Benzinga  Jun 30  Comment 
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) and Enventis Corporation (Nasdaq: ENVE), formerly HickoryTech, announced that each of their respective Boards of Directors have approved a definitive agreement for Enventis to merge with...




 
TOP CONTRIBUTORS

Consolidated Communications (CNSL) owns established incumbent local exchange telephone companies, (“ILECs”) that provide communications services to residential and business customers in Illinois, Texas and Pennsylvania. Consolidated offers a wide range of telecommunications services, including local and long distance service, custom calling features, private line services, high-speed Internet access, digital TV, carrier access services, network capacity services over their regional fiber optic network, and directory publishing. In addition, they operate a number of complementary businesses, including telemarketing and order fulfillment; telephone services to county jails and state prisons; equipment sales; operator services; and mobile services.[1]

Trends and Forces

Limited Competition

Fixed-line telecommunication: Consolidated is one of a number of rural telecom carriers that operate primarily in markets exempt from direct wireline competition by federal law. While these rural local exchange carriers (RLECs) still face modest competition, generally coming from wireless carriers offering large buckets of minutes, customer retention has been stronger, and their total access-line counts have held up better than those of their Baby Bell brethren.

Line Substitution

RLECs have come under pressure as consumers swap traditional phone lines for wireless substitutes. Analysts have questioned whether these increased access line losses will affect the sustainability of revenue and free cash flow for RLECs. Additionally, extra competition has come in the form of cable companies that offer triple-play packages including voice services.

Industry Consolidation

"Pursue Selective Acquisitions" is one of Consolidated's stated business strategies.[2]

Industry consolidation continues despite tough economic conditions - ex. CenturyTel's $11.6 billion offer for Embarq on Oct. 27, 2008. Consolidated itself is often rumored as a consolidation target.

Consolidated acquired North Pittsburgh Systems, Inc. on December 31, 2007, adding over 127,000 Access Line Equivalents for a total consideration of $375.1 million.[3]

Valuation

In a RLEC industry comparison, Stifel Nicolaus suggests EBITDA per access line is appropriate. [4]

Competition

Other RLECs:




References

  1. CNSL 2007 10-K
  2. CNSL 2007 10-K
  3. http://www.nptc.com/aboutus_news_consolidated.asp Joint CNSL, NPSI announcement
  4. http://www.telecomassn.org/conferences/2004/summer/2008StifelRLECMonitor.pdf
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