CenturyLink Is Not Wells Fargo
- CenturyLink took a hit over the last couple of weeks due to lawsuits claiming similar sales practices to Wells Fargo.
- The investment thesis for CenturyLink isn't based on a successful sales culture, questioning the impact to the stock unlike with Wells Fargo.
- Closing of the Level 3 merger remains key to the investment thesis.
Just as CenturyLink (CTL) was getting a lift from the announced CEO succession plan, the telecom got hit with multiple lawsuits. The suits charge a Wells Fargo (WFC) scheme hitting the stock by $3 in just over a week.
The question investors need to ask is if such a culture similar to a financial is even possible. Is CenturyLink not an even bigger buy based on a succession plan that would only escalate on any real evidence of fraud in the sales department under the current long-term CEO?