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Message: elnk

I bought this with the following in mind for this year...targets are 13-14

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Dialing Up Dividends: EarthLink Goes for Growth



Back in 1994 Atlanta-based EARTHLINK ( ELNK - news - people ) (ELNK, 9) was one of many Internet service providers sprouting up offering dial-up access. By 2000 it was one of the biggest behind AOL. Dial-up is going the way of the dodo, but EarthLink has migrated to high-speed connectivity and IP telephony. It just bought ITC DeltaCom and One Communications to expand its presence in the corporate market. EarthLink slashed its dividend from 16 cents per share to a nickel on Dec. 20, but the stock still yields 2.3%. Michael Crawford at B. Riley & Co. says EarthLink deserves an enterprise value more in line with competitors of four to six times expected 2012 Ebitda. That puts the stock around $13.

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