Tuesday, February 5, 2013

Why Cincinnati Bell Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecommunications company Cincinnati Bell (NYSE: CBB  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cincinnati Bell and see what CAPS investors are saying about the stock right now.

Cincinnati Bell facts

Headquarters (founded)

Cincinnati, Ohio (1873)

Market Cap

$969.2 million

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$1.5 billion

Management

CEO Theodore Torbeck (since January 2013)

CFO Kurt Freyberger (since August 2011)

Return on Capital (average, past 3 years)

11.1%

Cash/Debt

$7.7 million / $2.6 billion

Competitors

AT&T

Sprint Nextel

Verizon Communications

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 154 members who have rated Cincinnati Bell believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star 3Fairfield, succinctly summed up the bull case for our community:

[Cincinnati Bell] just spun off CyrusOne, a big data storage REIT, and retains 70+% of ownership so look for growth and increased cash flow as a benefit of the break up. Also, last week [Cincinnati Bell] named Ted Torbeck CEO -- Torbeck is known for his CEO turnaround expertise and expects to grow the wireless end of the business. Hedge funds including BlackRock�and [Gabelli Funds] say the stock looks promising and are two of the largest stakeholders. I am cautiously optimistic.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cincinnati Bell may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

No comments:

Post a Comment