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Stock impact report

Cogent Communications: Dividends Cut; Asset Monetization Could Serve As Next Catalyst [Seeking Alpha]

Cogent Communications Holdings, Inc. (CCOI) 
Last cogent communications holdings, inc. earnings: 2/27 07:00 am Check Earnings Report
Company Research Source: Seeking Alpha
Income investors are likely put off after CCOI saw a 98% dividend cut, ending a 12-year growth streak, resulting in miserly forward yields and potential triggering removal from key dividend indices. Capex spend is on the way down, but meaningful deleveraging hinges on data center asset monetization, which has the potential to generate $1.5B of cash. Operationally, CCOI's EBITDA margins are improving, with consensus expecting margins to reach 33% and the EBITDA base to grow by close to $40M (or 12% YoY) next year. CCOI has a buyback war chest to the tune of 12% of the market cap, and this could pick up, given the weakness of the share price, which is at 13Y lows. Daniel Grizelj/DigitalVision via Getty Images Bad to Worse Things appear to be going from bad to worse for Cogent Communications Holdings, Inc. ( CCOI ), one of the prominent facilities-based internet service providers [ISP] in the B2B [business-to-business] market. The last time we covered CCOI This article was Show less Read more
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