Why This Unloved 16% Yield Stock Will Surprise the Market

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Why This Unloved 16% Yield Stock Will Surprise the Market


When they see a weakness, short sellers can sharply and rapidly drive down the share price of a targeted stock. If you own shares of one of these stocks attacked by short seller, the price drop can make you question your investment decision. The logical approach is to look at the short thesis and determine if it is valid or an unlikely outcome. Keep in mind that short sellers can make money even if they are wrong. Their strategy is all about disinformation and timing. Investors who hold shares must evaluate the longer-term potential of the company.

Uniti Group (Nasdaq: UNIT) went into a steep decline in July-August 2017. The trigger was a financial restructuring announcement from Windstream Holdings (Nasdaq: WIN). UNIT was spun-off as a new REIT by Windstream in April 2015. With the IPO, UNIT received most of Windstream’s fiber and copper line assets. UNIT was the first REIT to be approved to own telecom infrastructure assets as REIT qualified assets. Initially, UNIT generated all its revenue and free cash flow from a master lease with Windstream.


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