Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

How Much Float Does CenturyLink have?

The Junk Pile

CenturyLink Stock is Junk

The cash flow might explain some of the problems at CenturyLink, the company is taking in just enough cash to pay the bills and finance a large salary for executives. It might also disprove a popular notion of Warren Buffett’s to invest businesses that are so simple to operate somebody’s idiot nephew can run them.

The reason Buffett might be wrong is that once in the executive suite, the idiot nephew is in a good position to loot the company. He might order a new corporate jet instead of updating the equipment, or sell off potentially profitable assets in order to raise the dividend and the price of the stock in his compensation package.

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