ASCMA

Ascent Capital Group Inc

Consumer


Presented:12/05/2017
Price:$11.37
Cap:$0.14B
Current Price:no data
Cap:no data

Presented

Date12/05/2017
Price$11.37
Market Cap$0.14B
Ent Value$1.82B
P/E RatioN/A
Book Value$12.14
Div Yield0%
Shares O/S12.21M
Ave Daily Vol63,620
Short Int1.64%

Current

Priceno data
Market Capno data
Ascent Capital Group, Inc. operates as a holding company to Monitronics International, Inc., which provides home security alarm monitoring services. It operates through the following business segments: Moni and LiveWatch. The Moni segment provides security alarm monitoring services: monitoring signals arising from burglaries, fires, medical alerts, and other events through security systems. The LiveWatch segment is a do-it-yourself home security provider, which offers monitored security services through a direct-to-consumer sales channel. Ascent Capital Group was founded on May 29, 2008 and is headquartered Greenwood Village, CO.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG; GOOGL), Ascent Capital Group Inc (ASCMA), Samsung Electronics Co Ltd (005930 KS)

Highlights

The presenter is long shares of Ascent Capital Group (ASCMA) at $11, and sees meaningful upside potential if a new initiative in home security is ultimately successful. Ascent owns Monitronics (MONI), the #3 player in the US home alarm monitoring industry, and there has been a shift toward “smart homes” that has driven consumers to upgrade security using more do-it-yourself (DIY) options. Technology has helped drive average RPU from the $40s to the $70s; and, for the thesis to work, the recently announced, exclusive partnership between MONI and Google’s Nest must be a success. ASCMA is a levered equity - the market cap is ~$145mm and debt amounts to $1.7bn - it trades at 5x EV/EBITDA so just a small degree of multiple expansion could lead to substantial returns on the equity.

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Idea Discussion

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