Back in May, my thought was that Frontier Communications (FTR) was attractively priced below $1.50. My major concern in owning the telecom stock was a lingering shakeout from the dividend cut and reverse split that has the stock hitting new lows now.
The stock fell further following a presentation at the Sohn Conference that called Frontier a good short. The question is whether the reverse split on July 10 was the move that will finally create a bottom in Frontier.
Josh Resnick from Jericho Capital made the claim that Frontier was headed to zero. Such a move would make the stock a great short even trading at a price effectively below $1.
