Why Windstream Holdings, Inc. Stock Fell 14.5% in September
Shares of Windstream Holdings (NASDAQ: WIN) fell 14.5% in September, according to data from S&P Global Market Intelligence. The slide started when executives from networking assets partner and former Windstream division Uniti Group (NASDAQ: UNIT) dropped some less-than-favorable comments about the regional telecom on the industry conference circuit. Another steep plunge followed later in the month, when a debtholder filed a notice of default against some of Windstream's senior notes.
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In at least two separate conference presentations last month, Uniti CFO Mark Wallace admitted that the spin-off from Windstream with a single client was less than optimal, and that his company is working hard to add more customers and distance itself from the Windstream partnership. Thirty percent of Uniti's revenue already comes from clients not named Windstream, and Wallace hopes to raise that ratio to 50% within the next two years. That's hardly a vote of confidence in your largest customer, and Windstream shares fell after each of these presentations.
Source: Fool.com
