Monday, April 23, 2012

Otelco shares tank on non-renewal of Time Warner contract

Otelco shares tank on non-renewal of Time Warner contractAtlanta, GA 4/23/12 (StreetBeat) -- Shares of telecom services provider Otelco Inc(Nasdaq:OTT) fell as much as 80 percent after it said Time Warner Cable (NYSE:TWX) will not renew a contract and suspended dividend.

The contract to provide network connections accounted for 11.7 percent of Otelco's 2011 revenue. It expires on December 31.

Otelco said dividends on the common stock of its income deposit securities — which consist of common stock and debt — will be suspended immediately.

Shares of the company touched a low of $6.62 in their biggest intraday fall to become the top percentage loser on the Nasdaq. They were later trading down 38 percent at $7.45.

Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.

StreetBeat Disclaimer

Distributed by Viestly

No comments:

Post a Comment