Tomahawk, WI 8/13/2013 (Basicsmedia) – Investors have to look at various factors whenever they are examining their investment options. If the stock they are interested in has a good or bad future outlook, investors must separate fact from fiction and make up their minds as to whether the reasons stated are valid or not. This is what is happening with Windstream Corporation (NASDAQ:WIN) stock, where there are reports to the effect that the company is not worth the investment from shareholders and other prospective investors. Here, we take a look as to whether this is true or merely a false alarm.


Image compares dividend yields between WIN and other telecom companies.

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WIN’s Latest Revenue vs The Past

WIN is primarily a telecommunications company, although a number of rural residents may know it as a provider of communication and technology solutions. When you consider that the company reported revenue to the tune of $6.09 billion. However, maybe the thing that is causing jitters among investors is the fact that the company reported better revenue last time compared to this quarter. The quarterly revenue growth was not impressive, where it stood at -2.10% from last year’s. This is yet another aspect of its financial results which may worry some investors.

On the other hand, if you were to monitor the revenue growth of WIN from 2009, you will discover that there have been some wonderful and positive developments. Where it reported revenue growth of $2,997 million in 2009, this figure rose to $3,712 million in 2010, before settling at $4,286 million in 2011. Last year, in 2012, the revenue growth was an impressive $6,156 million. Therefore, over a period of around four years, we can clearly see that the company has reported an increase in revenue growth to the tune of more than $4,000.

Growth in revenue is something which is expected to continue in 2013, and possibly to the foreseeable future. WIN’s decision to focus on the rural areas is something which will be of great benefit to its overall financial health, and growth of the company in terms of revenue growth. The telecommunication and technology industries are undergoing a lot of positive developments which are then expected to help WIN achieve its goal. I would not term WIN as one stock which is trading lowly and investors should avoid as if their lives depended on it.

WIN Is Great for Short Sellers

But I can understand where the investors and analysts are coming from. The company has seen its dividend yield settling at around 10%, while the stock price hasn’t fared any better as might have been expected, where it currently has dropped by 16%. When you consider that the market has been rising, this is not something which investors love to hear about any company where they own shares. The payout ratio is also quite high, although to its benefit, it has been paying dividends of 25 cents, and never stopped even during the global financial crisis of 2008.

If your reason for investing in this stock is to benefit from being a short seller, you will find it quite attractive. As a short seller, if this tock will go down in price, you will benefit, perhaps even more than other investors.

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