ZAYO

Zayo Group Holdings Inc

TMT


Presented:06/10/2015
Price:$26.93
Cap:N/A
Current Price:$34.99
Cap:$8.29B

Presented

Date06/10/2015
Price$26.93
Market CapN/A
Ent Value$10.05B
P/E RatioN/A
Book Value$4.73
Div YieldN/A
Shares O/S243.01M
Ave Daily Vol860,000
Short Int1.19%

Current

Price$34.99
Market Cap$8.29B
Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States and Europe. The company operates in three segments: Physical Infrastructure, Lit Services, and Other. The Physical Infrastructure segment provides dark fiber, fiber-to-the-tower and small cell mobile infrastructure, and colocation and interconnection services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Lit Services segment offers bandwidth infrastructure solutions comprising wavelength, Ethernet, Internet protocol connectivity, and SONET services through its metro, regional, and long-haul fiber networks for carriers, financial services companies, healthcare, government institutions, education institutions, and other enterprises. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. The company was founded in 2007 and is headquartered in Boulder, Colorado. Zayo Group Holdings, Inc. is a subsidiary of Communications Infrastructure Investments, LLC.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Cogent Comm Hldg (CCOI), Equinix Inc (EQIX), Google Inc (GOOG), Level 3 Communications Inc (LVLT), Zayo Group Holdings Inc (ZAYO)

Highlights

The presenter is long shares of Zayo Group (ZAYO), the provider of dark fiber and other bandwidth infrastructure/ connectivity solutions globally and across the US. The company was founded in 2007 and came public in 2014, but the presenter said it has had public debt outstanding for some time so President and CEO Dan Caruso is well known and generally liked. There appears to be a favorable risk/reward setup as the market is underappreciating the value of dark fiber and the acquisitions ZAYO has made. Additionally, management has been breaking out FFO and AFFO, and the presenter sees a clear path for the company to become a REIT by 2017.

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