CHTR
Charter Communications Inc.
TMT
04/21/2014
Presented
| Date | 04/16/2014 |
| Price | $118.11 |
| Market Cap | $12.80B |
| Ent Value | $26.96B |
| P/E Ratio | N/A |
| Book Value | $1.30 |
| Div Yield | N/A |
| Shares O/S | 108.18M |
| Ave Daily Vol | 1,670,000 |
| Short Int | 5.43% |
Current
| Price | $331.94 |
| Market Cap | $47.38B |
| Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, including basic and digital video, premium channels, on-demand, pay-per-view, high definition television, and digital video recorder services, as well as Charter TV App, which enables video customers to search and discover content on various devices, including the iPhone, iPad, iPod Touch, and Android based tablets. It also provides Internet services, such as residential Internet services; Charter.net, an Internet portal that provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and Charter Security Suite, which protects computers from viruses and spyware, as well as offers parental control features. In addition, the company provides telephone services comprising voice communications services primarily using voice over Internet protocol technology; broadband communications solutions comprising video entertainment services, Internet access, business telephone services, data networking, and fiber connectivity to cellular towers and office buildings for business and carrier organizations. As of December 31, 2013, it served approximately 4.2 million residential video customers; approximately 4.4 million residential Internet customers; approximately 2.3 million residential voice service customers; and approximately 567,000 commercial primary service units, primarily small-and medium-sized commercial customers. The company was founded in 1999 and is headquartered in Stamford, Connecticut. |
Highlights
Despite Charter Communications’ (CHTR) recent issues communicating with the Street/ investors (disappointing earnings and guidance, and higher capex than anticipated), the presenter is long shares and thinks the company could surprise the market in Q1 on residential subscriber growth ahead of expectations (6.5-7% vs. the Street at 5%). Given the aforementioned issues and substantial leverage (a concern if rates do rise), he thinks it’s important to look for “guideposts” that signal the company is on the right track (e.g., a beat on subscribers, or EBITDA). If his thesis is correct, and CHTR has reached an inflection point, shares could easily recover from the $118 level and head towards his target of $160.
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