Zacks Analyst Blog Highlights: CIT Group Inc., Dean Foods, Frontier Communications, Verizon Communications and Time Warner Cable

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CHICAGO--(Business Wire)--
Zacks.com announces the list of stocks featured in the Analyst Blog. Every day
the Zacks Equity Research analysts discuss the latest news and events impacting
stocks and the financial markets. Stocks recently featured in the blog include:
CIT Group Inc. (NYSE: CIT), Dean Foods (NYSE: DF), Frontier Communications
(NYSE: FTR), Verizon Communications (NYSE: VZ) and Time Warner Cable (NYSE:
TWC).

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Here are highlights from Monday`s Analyst Blog:

CIT Group Files Chapter 11

CIT Group Inc. (NYSE: CIT) has filed for Chapter 11 protection on Sunday. The
company struggled for months to avoid collapse since the recession elicited
billions of dollars in loan losses, and the financial crisis made it incapable
of funding itself from its main financing source.

This widely expected Chapter 11 filing is one of the largest in U.S. history,
following Lehman Brothers, Washington Mutual, WorldCom and General Motors. The
U.S. government will probably lose most of its $2.3 billion aid given to CIT
last December through the Troubled Asset Relief Program (TARP). We think the
problems at CIT will further weigh on the U.S. economy.

CIT's bankruptcy filing shows $71 billion in finance and leasing assets against
total debt of $64.9 billion. The company cited that its bondholders selected a
prepackaged reorganization plan which will reduce total debt by $10 billion
while allowing the company to run its business.

According to management, the decision to proceed with the company`s plan of
reorganization will allow it to continue to provide funding to two sectors --
small business and middle market customers -- which remain vital to the U.S.
economy.

Dean Foods Beats, Ups Guidance

Dean Foods (NYSE: DF) reported relatively strong third-quarter results with
earnings of 34 cents per share. Quarterly earnings were up 21% year-over-year.

Quarterly net sales declined 13.2% year over year to $2.7 billion due to the
pass-through of lower overall dairy commodity costs, despite positive
contributions from acquisitions and lower net sales volumes in the
WhiteWave-Morningstar operations, which were partially offset by
acquisition-related volume growth in Fresh Dairy Direct and
WhiteWave-Morningstar.

Net sales in the Fresh Dairy Direct segment declined 18.3% as the company passed
some of the lower dairy costs to customers but were partially offset by
continued volume growth. Raw milk prices were 45% lower compared to the
prior-year.

Frontier Deal Wins Key Approvals

Frontier Communications (NYSE: FTR), a leading telecom operator in rural and
suburban areas in the US, has reportedly received approvals from the Public
Utilities Commissions of the states of California and Neveda and Public Service
Commission of South Carolina for its impending acquisition of the rural
fixed-line business of Verizon Communications (NYSE: VZ).

Moreover, the acquisition was recently approved by the shareholders of Frontier.
The transaction is now subject to approval by the Federal Communications
Commission (FCC) and other closing conditions and is expected to close during
the second quarter of 2010.

Verizon is divesting its rural fixed-line business (involving approximately 4.8
million access lines) in 14 states to Frontier under an agreement valued at
approximately $8.6 billion. Under the deal terms, Verizon`s shareholders will
receive approximately $5.25 billion in common stock of Frontier, equating to
around 68% stake in the company.

Moreover, Verizon will also receive $3.3 billion in cash and debt securities
from Frontier. The transaction, if successful, will provide Verizon`s
shareholders a controlling interest in Frontier.

This deal represents a major opportunity for Frontier as the company remains
significantly challenged by the beleaguered economic conditions in its service
territories and contends with loss of legacy landline telephony business to
wireless and other competitive offerings by cable TV operators such as Time
Warner Cable (NYSE: TWC). Frontier continues to experience decline in revenues
which is, to a great extent, attributable to consistent sequential decline in
fixed access lines.

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