FTR Bagholders: Take a Lesson From RIM

Tickers in this article: FTR RIMM P
NEW YORK ( TheStreet) -- Last week on TheStreet, I made nothing short of an impassioned plea to telecommunications provider Frontier Communications (FTR) longs: Stop chasing yield and sell this dog of a stock.
I feel for what I am sure are a whole host of retirees who got taken by what was once a double-digit dividend return. Of course, no dividend can make up for a 51% drop in the price of the underlying stock in the last year.

The stock market moves fast. The numbers in that article are already outdated (FTR is down 59% over the last year, as of intraday Tuesday), but the overarching theme is not.

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I have little doubt, however, that FTR bulls will defend their positions even after the latest swoon. Expect more of the same. Consider a comment posted by an apparent FTR long to last week's article:

Way to be backwards looking ... I just took the plunge yesterday at just over $4.00 per share, thank you very much. Why? Because my focus is on the future, not the past. The steep price decline provided a much better valuation (entry point) than was available 12 months ago.
Listening to Bozo's like this is why most little investors lose regularly.

Man. It's enough to make this Bozo cry.

Go ahead. Buy more. Soon, you should be able to get some cheap shares under $3.00 per share.

Please allow me to make a couple of things completely clear.

First, I hate to see people lose money. Nothing sucks more. Therefore, I am not gloating or laughing in a bagholder's face. Even a bagholder who called me a "Bozo." Instead, I am trying to make the point that you are fooling yourself If you continue to buy this stock.

Second, if you know that I am long Pandora(P) , you might experience the urge to call me a "hypocritical Bozo." When P dips, I buy more. In fact, as long as the long-term narrative remains constant and forward-looking, I will buy shares of Pandora at any price. I have bought the stock down at $8.00 and as high as $15.00.

There's a huge difference between FTR and P. It's more than nuance. It's something quite profound and fundamental.

Already growing explosively, Pandora is on the cusp of fresh explosive growth. Spin it however you want, that's not the case at Frontier. The company finds itself wallowing in a massive reorganization.

While different ballgames, similarities exist between Frontier and Research in Motion (RIMM) . They exist at the company level, at the stock level and at the shareholder level. The connection is not all that difficult to understand because they interrelate.