ah, the old all their money is gone for no apparent reason ploy, lol.
Did the author mention any of this information?
The reason the stock dropped is because they stopped their dividend and the rightly upset the investor base that was holding the company for that reason.
Or that all that cash that was gone for apparently to reason was use to buy something?
Cincinnati Bell owns a 69% stake in CyrusOne (NASDAQ: CONE ) , which is worth over $1 billion now. It intends to monetize this asset some time following a lock-up period that ends in January. CyrusOne is growing quickly, and revenue could easily climb 20% this year. This is Cincinnati Bell's best asset and the rapid deleveraging – I expect debt could be slashed by 70% in the next year or two -- should help boost free cash flow markedly.
The market was really upset by management's decision to reinvest in its wireline business and not pay a dividend. But that huge drop in the share price resets the market's expectations for CinBell, even as CyrusOne now has public pricing and a firm valuation. Depending on the timing of deleveraging, I think CinBell has the chance to double in the next two years, perhaps sooner. Listen to the radio broadcast for more.
DALLAS, March 27, 2013 (GLOBE NEWSWIRE) -- CyrusOne Inc. (Nasdaq:CONE), today announced that it is set to join the Russell 2000 and Russell 3000 Indices, following Russell Investments' first quarter IPO additions to its comprehensive set of global equity indices on March 28, according to a preliminary list of additions posted March 15 on www.russell.com.
Gary Wojtaszek, President and Chief Executive Officer of CyrusOne, commented, "We are very pleased to join the Russell family of Indices. The inclusion of CyrusOne in the Russell 2000 Index is an important step in the progression of our company. In addition, it represents a significant opportunity to increase our visibility within the investor community."
Membership in the Russell 2000®, which remains in place for one year, includes automatic inclusion into the broader Russell 3000® Index as well as the appropriate growth and style indices. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe and is a subset of the Russell 3000 Index, representing approximately 10% of the total market capitalization of that index.
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. In the institutional marketplace, an industry-leading $3.9 trillion in assets currently are benchmarked to them. Russell determines membership for its equity indices primarily by objective, market capitalization rankings, and style attributes.
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