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| Merrill Lynch: USF Plan Will Drive Up Company Shares |
| Monday, 19 September 2011 17:03 |
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FCC will do less than investors expect. Dave Barden at Merrill writes "Although the impact to rural carriers is likely to be modestly negative for cash flow, we believe this impact is broadly anticipated by investors and see any resolution removing an ongoing overhang on the stocks as a positive." In other words, the stock price assumes a much more stringent plan than Barden expects the FCC to approve.
Barden on this I believe well-informed. Although the broadband plan called for cutting much of the ridiculously high subsidies, in the political manuevering since Julius seems to have tilted strongly to the carriers.
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