Daily Stock Analysis: Cogent Communications

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select the twenty-first stock for Vista this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a mid-cap telecom services company named Cogent Communications Holdings Inc. Its trading ticker symbol is CCOI. This is my second report on Cogent Communications Holdings Inc for this portfolio. I last reported on it in December.

Cogent carries over one-fifth of the world's Internet traffic over its network and is an Internet service provider for businesses. 

Cogent's corporate customers are in high-rise office buildings, and the firm provides them with two types of connections: dedicated Internet access, which connects them to the Internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for two-thirds of the firm's revenue. 

Cogent's netcentric customers include Internet service providers and content providers, to which Cogent provides Internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the U.S.

The company operates 54 data centers and provides facilities to 2,801 buildings and on-net services to 1,767 to multi-tenant office buildings. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. 

Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

I use three key data points to gauge dividend equities or funds like Cogent Communications Holdings Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

CCOI Price

Cogent's price per share closed at $58.91 yesterday. A year ago its price was $74.07. Price fell $15.16 or about 20% last year. 

If Cogent's stock trades in the range of $50 to $70 this next year, its recent $58.91 price might rise by $6.09 to reach 65.00 by January 28, 2022. 

CCOI Dividends

Cogent's most recently declared quarterly dividend was $0.73 paid December 4th. Dividends are estimated to total $2.92 per share annually and yield 4.96% at yesterday's $58.91 closing price.

CCOI Gains?

Adding the $2.92 annual Cogent Communications Holdings Inc anticipated dividend to my $6.09 optimistic price upside shows a $9.01 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Cogent Communications Holdings Inc at $58.91 per share and we'd buy 17 shares of CCOI stock.

A $10 broker fee (if charged) paid half at purchase and half at sale might cost us about $0.59 per share.

Subtract that maybe $0.59 brokerage cost from my estimated  $9.01 gross gain per share results in a net gain of $8.42 X 17 shares = $143.14 for a 14.3% net gain on a $1,001.47 investment.

Cogent Communications Holdings Inc shows a possible 14.3% net gain including a 4.96% dividend yield. It could be more, it could be less.      

All of the estimates above are speculation based on the past history of Cogent Communications Holdings Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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