Author Topic: CABO - Cable One  (Read 40071 times)

rogermunibond

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 843
Re: CABO - Cable One
« Reply #120 on: November 11, 2019, 06:18:29 AM »
Does it make sense for Cox or Mediacom to look at CABO?



wabuffo

  • Sr. Member
  • ****
  • Posts: 461
    • Twitter
Re: CABO - Cable One
« Reply #121 on: November 11, 2019, 06:31:56 AM »
Does it make sense for Cox or Mediacom to look at CABO?

I think both of these ownership groups probably are looking for exits.  Mediacom, in particular, has been for sale for years but asking price is ridiculously high.  I think ATUS needs to reduce debt - but once it does, it will be looking to roll-up more cablecos.

wabuffo

Munger_Disciple

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 583
Re: CABO - Cable One
« Reply #122 on: May 22, 2020, 11:20:44 AM »
https://finance.yahoo.com/news/cable-one-announces-pricing-upsized-004900676.html

Cable One selling stock at a bleeding edge multiple of 18-19 times EBITDA.

Munger_Disciple

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 583
Re: CABO - Cable One
« Reply #123 on: May 22, 2020, 11:41:07 AM »
I think this is a smart move by CABO. The sellers of cable properties don't want CABO's inflated stock. They prefer cash. So CABO is selling stock to "public" shareholders and will likely use the cash for acquisitions. Thus this can be viewed as CABO indirectly using its high stock price to buy other cable cos. 

jgyetzer

  • Jr. Member
  • **
  • Posts: 93
Re: CABO - Cable One
« Reply #124 on: May 22, 2020, 11:52:45 AM »
I've owned this for several years and although I dislike dilution, I think this reflects smart capital allocation.  There are small rollup opportunities still available.

Munger_Disciple

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 583
Re: CABO - Cable One
« Reply #125 on: May 22, 2020, 12:21:40 PM »
Dilution due to the stock offering is a good deal for long term shareholders and a bad deal for buyers of this offering. It is as if LT shareholders sold a portion of their holding at a very high price in a tax-free manner to the buyers.

wabuffo

  • Sr. Member
  • ****
  • Posts: 461
    • Twitter
Re: CABO - Cable One
« Reply #126 on: June 12, 2020, 11:02:05 AM »
https://www.lightreading.com/services/cable-one-snaps-up-valuenet-fiber-/d/d-id/761647

Cable One has a deal to acquire KS-based ValueNet Fiber.  Terms not disclosed.  You kinda saw this coming with the recent secondary and the use of the proceeds to pay down of debt.  In effect, CABO issued maybe overvalued shares in a roundabout way to make this acquisition.

wabuffo