EKT SM

Euskaltel S.A.

TMT


Presented:02/15/2017
Price:€8.99
Cap:$1.52B
Current Price:€10.94
Cap:$2.17B

Presented

Date02/15/2017
Price€8.99
Market Cap$1.52B
Ent Value$2.79B
P/E Ratio24.29x
Book Value€4.83
Div Yield0.03%
Shares O/S151.66M
Ave Daily Vol535,126
Short IntN/A

Current

Price€10.94
Market Cap$2.17B
Euskaltel SA engages in the provision of telecommunications services. It operates through the following segments: Residential, Business, and Wholesale and Other. The Residential segment provides bundles, broadband, pay television, and mobile and fixed telephony to residential customers. The Business segment gives fixed and mobile telecommunication services to Small and Home Offices, Small and Medium Enterprises, and Large Accounts. The Wholesale and Other segment provides services to the wholesale customers, which includes leased lines, data and voice services that uses the firm's facilities and infrastructure to provide services to their customers. The company was founded on July 3, 1995 and is headquartered in Derio, Spain.

Publicly traded companies mentioned herein: Euskatel SA (EKT SM), Orange SA (ORAN, ORA FP), Telefonica SA (TEF, TEF SM), Vodafone Group PLC (VOD, VOD LN), Zegona Communications PLC (ZEG LN)

Highlights

The presenter is long shares of Euskatel (EKT SM), a 1.4B Euro market cap Spanish telecom and cable provider that’s a classic example of a “dislocated security.” He views EKT SM as a well-positioned operator whose stock price has suffered over the past year due to some one-time issues and competitive pressures that are now subsiding, and thinks there are a number of catalysts to come in 2017 that could boost free cash flow and the company’s share price. In addition, he sees EKT SM as a potential seller in the consolidating Spanish telecom space, which would translate to additional upside. If his thesis plays out, EKT SM shares could appreciate 40% - 50% over the next two years.

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