Look for 16-state-presence Windstream to post a 3-5% revenue gain in 2010, as broadband subscriber increases offset a likely phone revenue decline. Windstream should also benefit from a rise in business broadband subscriptions as business formation increases with the U.S. economic recovery.
The First Call FY2009/FY2010 EPS estimates for WIN are 81 cents to 86 cents. That 86-cent FY2010 EPS estimate will likely prove to be low.
Technically, Windstream's stock chart is strong -- an uptrend. Further, as noted, Windstream also recently broke through psychological resistance at $10 -- a key threshold for many institutional investors (IIs). As a result, more IIs will start buying WIN's shares.
2010 Outlook: Windstream is a long-term play. Don't buy WIN if you're looking to close your position by the end of 2010, as the 1-year risk/return is not favorable.
Stock Analysis: Windstream Corp. is a moderate-risk stock. Consider buying a 25% position in WIN now; then buy another 25% in one month, if U.S. economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your WIN position before March 2010. Sell/stop loss if you were to buy shares in this company: $4.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX