WIN strives to be the premier consumer and enterprise communications and services provider in the United States. The firm offers high-speed Internet, digital television, and other high tech goods and services to customers. They plan to execute this by making significant investments in data centers to broaden their technology-based services, but the penetration into the consumer front has been costly. Total capital expenditure from 2011 to 2012 was up 56%. Continued expense increases could negatively affect the stock. For example the stock has a corporate credit rating of Ba2 (Moody’s), BB-(S&P), and BB+(Fitch), with one negative outlook and the remaining with stable and is down roughly 16% over a three year period.
From a technical prospective, the stock has been a loser. WIN’s major moving averages are all above it and currently pointing toward lower prices. WIN made a recent low of $7.86 in mid November of 2012 and may be heading that way to re-test prior lows. Additionally, short interest has doubled since mid 2011 and currently stands at roughly 11% of the float. One must remember that short sellers have to pay the massive dividend out, so there is a cost to be short.
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