NUM FP

Numericable-SFR SA

TMT, Event Driven/Special Sit


Presented:06/10/2015
Price:€48.80
Cap:$26.81B
Current Price:€34.50
Cap:$9.29B

Presented

Date06/10/2015
Price€48.80
Market Cap$26.81B
Ent Value$43.48B
P/E Ratio39x
Book Value€14.23
Div YieldN/A
Shares O/S486.94M
Ave Daily Vol220,000
Short IntN/A

Current

Price€34.50
Market Cap$9.29B
Numericable-SFR provides cable and fiber optics services in France. The company operates in three segments: B2C Operations, B2B Operations, and Wholesale Services. The B2C Operations segment offers TV subscription services, broadband Internet, basic cable services, fixed telephony, mobile telecommunications, and installation services to residential and business customers. The B2B Operations segment provides data transmission and very high speed Internet, telecommunications services, convergence, and mobility solutions through fiber and digital subscriber line networks to business customers. The Wholesale Services segment offers network infrastructure services, including indefeasible rights of use and bandwidth capacity on its network, to other telecommunications operators, as well as the related maintenance services. The company is based in Puteaux, France.

Publicly traded companies mentioned herein: Altice SA (ATC NA), Bouygues SA (EN FP), Numericable-SFR (NUM FP), Time Warner Cable Inc (TWC), Vivendi SA (VIV FP)

Highlights

At 48 euros/share, Numericable-SFR (NUM) stock is attractively valued. Shares have performed poorly since reaching a high of 60 in March and the presenter is long, citing a favorable risk/reward setup with a high probability of upside to the 60 - 70 range over the foreseeable future. In his opinion, investors have "moved on" now that Altice and NUM have purchased Vivendi's remaining stake and everyone is focused on Drahi's purchase of a majority stake in Suddenlink and speculation about his pursuit of Time Warner Cable.

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Idea Discussion

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