Confusion Reigns Supreme In Windstream After Spinoff
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Windstream Holdings, Inc. (NASDAQ: WIN) shares are trading lower by $1.94 at $10.27 from its adjusted Friday close. That closing has been adjusted to a tax-free spinoff of some of its networks assets.
The new CS&L REIT (NASDAQ: CSAL) has been active since April 20, and has rallied as high as $34.63 and as low as $27. Shares now change hands near the $28 level.
The complicated transaction will change the Windstream dividend and a one-for-six reverse stock split is adding layers of confusion to the actual price and true value of the company.
Thus far, investors are abandoning the issue in Monday's session, similar to the way they exited CS&L last week. After opening at $11.72, it briefly popped to $11.90 before sharply reversing course.
So far, the stock has tanked to $10.09 and is attempting to distance itself from that level.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.