Cincinnati Bell Shares Surged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of regional telecom Cincinnati Bell (NYS: CBB) dialed up gains as large as 10.4% today on above-average trading volume.

So what: CFO Kurt Freyberger gave a presentation this morning at the UBS Media and Communications Conference which seems to have impressed investors. Freyberger took pains to underscore the importance of data center colocation to his company's future, hitting a ton of hot-topic keywords in the process.

Now what: This is an unusual telecom stock because it's based on business growth rather than a nonexistent dividend policy. You might buy Verizon (NYS: VZ) for its 5.3% payout or Frontier Communications (NYS: FTR) because of the 13.5% yield, but Cincinnati Bell is reinvesting its operating cash flows into growing the business instead. This five-star CAPS stock is too busy building the perfect cash machine to start paying investors quite yet.

Interested in more info about Cincinnati Bell? Click here to add it to My Watchlist.

At the time thisarticle was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.