Who knows why stocks sell off sometimes, but they surely do. CTL has sold off since late Sept. from around $43 per share to now around $39 per share. The stock went ex-dividend Sept. 7 so that is not the reason and we have scanned the message boards, news releases, as well as the pundit crowd and can find no reason there for the sell off either.
So with that said CTL is now yielding right at 7.5% and this is a solid dependable yield, not one just pushed up due to the downward move in stock price. For those who have not deployed assets in CTL now might be the time. We have no idea if this stock is going to go down some more, but here at just uner $39 per share you get a good company at a good price and a yield that makes anyone owning US Treasuries view with envy.
So even if CTL reports a weaker than expected earnings this quarter we still like CTL and believe now is a good time to buy.
We own CTL options.
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