Why Frontier Communications Corp. Stock Fell 30% in November

Markets Motley Fool

What happened

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Shares of Frontier Communications (NASDAQ: FTR) fell 29.8% lower in November 2017, according to data from S&P Global Market Intelligence. It was a tragedy in three parts.

So what

Frontier's difficult month started with a 24% plunge on November 1, triggered by a disappointing third-quarter earnings report. The next week, a Merrill Lynch analyst slashed his price target on the stock from $19 to $4 per share, noting that the huge dividend yield might be unsustainable. The stock got another 15% haircut that day, erasing all of the previous week's recovery and then some. Finally, Frontier investors suffered another 24% setback on November 24, on no real news at all.

Now what

Frontier investors are running low on hope, as the regional telecom continues to inch toward the edge of a cliff. The stock has lost 83% of its value in 2017, triggering a 15-for-1 reverse stock split and a drastic dividend reduction along the way. Even so, the plunging stock price has held the dividend yield at a downright silly 27%.

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This is not the dividend stock you are looking for, dear investor. Run away and don't look back. Frontier doesn't look like a turnaround candidate in any way, shape, or form.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.