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Company: Qwest Communications International (Q)
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83%
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24 votes

  Huge Free Cash Flow

Dont look at EPS - look at the free cash flow of the company. EPS is much lesser than FCF/share, because (a) Capex < depreciation, and (b) company doesn't pay any cash taxes while it books taxes on its income statement.

At $1.2 bn FCF and $5bn market cap, company is trading at 24% FCF yield. To the bear argument that customers are disconnecting landlines etc, I will say - look at AOL and its numbers. It still exists and generates lots of cash flow. These businesses are not going to disappear overnight.

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0%
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0 votes

  Long distance service efficiency offsets wireline losses

Qwest's long distance service has gained efficiency and subscribers to offset the wireline losses.

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0%
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0 votes

  Gained back investor confidence after a legacy of scandal

Qwest management has gained back investor confidence after a legacy of scandal by decreasing debt and focusing on its new image.

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