TWC
Time Warner Cable Inc.
TMT, Consumer
10/13/2014
Presented
| Date | 10/06/2014 |
| Price | $142.76 |
| Market Cap | $39.90B |
| Ent Value | $64.10B |
| P/E Ratio | 21.74x |
| Book Value | $28.54 |
| Div Yield | 1.9% |
| Shares O/S | 279.49M |
| Ave Daily Vol | 1,710,000 |
| Short Int | 1.59% |
Current
| Price | $209.56 |
| Market Cap | $59.66B |
| Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services in the United States. It provides various residential services that comprise video services, including video on demand, digital video recorder, and start over and look back services; high-speed data services that include communication tools and personalized services, such as email, PC security, parental controls, and online radio services; voice services that comprise local and long distance calling throughout the United States, Canada, and Puerto Rico; and IntelligentHome, a next-generation home automation and monitoring service. In addition, the company provides business services that comprise data services, including Internet access, network services, and wholesale transport services; and video services, such as various video programming tiers and music services. Its voice services include Business Class Phone that comprises various calling plans options, such as call hunting, call forwarding options, call restrictions, and call transfer; Business Class primary rate interface, a trunk service that offers trunk packages with approximately 23 simultaneous voice calls on each trunk line for medium and enterprise-sized businesses; and managed and outsourced information technology solutions, and cloud services, such as managed network security, domain name registration, online backup, hosted Microsoft Exchange and SharePoint, Web hosting, infrastructure as a service, desktop as a service, customized managed hosting, managed application, and messaging solutions. As of December 31, 2013, the company served approximately 15 million customers. It has operations in the New York State, the Carolinas, Ohio, Kentucky, Wisconsin, Southern California, and Texas. Time Warner Cable Inc. is based in New York, New York. |
Publicly traded companies mentioned herein: Time Warner Cable (TWC), Comcast (CMCSA), Sony (SNE), Viacom (VIAB) and Charter Communications (CHTR)
Highlights
Given the pending merger between the two companies, currently investors are effectively buying Comcast (CMCSA) at around $50 per share through shares of TWC. The presenter likes the risk-reward set-up, believing that Comcast has downside potential to perhaps $45 per share at this level, with potential upside of $75 through the end of 2015. He regards the trade as a solid opportunity given concerns over the likelihood of the deal closing and the potential for mounting regulation.
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