ATUS

Altice USA Inc - Ordinary Shares - Class A

TMT


Presented:02/04/2020
Price:$28.06
Cap:$18.36B
Current Price:$2.40
Cap:$1.11B

Presented

Date02/04/2020
Price$28.06
Market Cap$18.36B
Ent Value$42.94B
P/E Ratio54.87x
Book Value$3.27
Div Yield0%
Shares O/S654.33M
Ave Daily Vol5,458,454
Short Int9.88%

Current

Price$2.40
Market Cap$1.11B
Altice USA, Inc. engages in the provision of broadband, pay television, telephony services, proprietary content, and advertising services. Its brands include Optimum, Suddenlink, Lightpath, AMS, News 12 Networks, and News 12 Varsity. The company operates through the Cablevision and Cequel business segments. Altice USA was founded by Patrick Drahi in 2001 and is headquartered in Long Island City, NY.

Publicly traded companies mentioned herein: Altice USA Inc (ATUS), Charter Communications Inc (CHTR), Roku Inc (ROKU), Sprint Corp (S), T-Mobile US Inc (TMUS)

Highlights

The presenter is long shares of Altice USA Inc (ATUS), thinking the $18B cable provider will benefit from accelerated advertising growth and its relatively new wireless (MVNO) business. Importantly, he believes Altice’s mobile virtual network operator (MVNO) agreement with Sprint could be more valuable if Sprint/T-Mobile’s deal goes through, but is still attractive without a deal given its wireless subscriber base. He expects Altice will guide EBITDA a point lower than consensus estimates when the company reports Q4 earnings (February 12, 2020 after market close), which he views as especially attractive entry point. The stock is currently trading at ~$28 per share, or 12x his 2020 FCF estimate, and he believes accelerating growth and an undervalued MVNO business will result in multiple expansion.

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Idea Discussion

Commentor 1 - 2 weeks ago

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