George Walker 01:52 AM 01/08/2023

$CTL If rates continue to grow, it can start trading below book value. Stocks with such thin margin can go to a spiral: floating-rate debt becomes more expensive, than refinancing of fixed rate debt follows. Ratings are lowered and this leads to next increase in cost of debt. Them, it becomes higher than ROIC. #Bearish

Rob Cawthon 04:37 AM 01/03/2023

$CTL Long term Lumen doesn't have an attractive business model. It has ROIC of 5.8% and WA interest rate on LT debt is 5.1%. So this company barely makes any money. Of course, it sells at 0.43 P/B but D/E is very high, 2.04, so ROIC adjusted for cheap equity is still low, 7.1%, vs. cost of LT debt. #Bearish