tag:blogger.com,1999:blog-5389144729834496735.post6989683088678328930..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: Charter Communications (CHTR)Unknownnoreply@blogger.comBlogger33125tag:blogger.com,1999:blog-5389144729834496735.post-64250681529163363882015-06-08T08:55:49.615-04:002015-06-08T08:55:49.615-04:00Yeah, the price does seem rich, or at least a lot ...Yeah, the price does seem rich, or at least a lot richer than last year (when they went after TWC). It sounds like they are being conservative on their synergies so they are probably looking at a lot more synergies than they announced. I don't doubt Malone will get value out of these transactions.kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-78368888644068357022015-06-07T01:43:29.203-04:002015-06-07T01:43:29.203-04:00Malone and co think the purchase of TWC will gener...Malone and co think the purchase of TWC will generate high teens, low 20s IRR.. Interesting, given the headline price seemed "rich". Any general thoughts on the deal? The Liberty Media investor day is a masterclass, in case you missed it. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-47745581758813863262014-03-14T16:41:04.366-04:002014-03-14T16:41:04.366-04:00Absolutely. I use netvibes (once google reader sh...Absolutely. I use netvibes (once google reader shut down). I use the free option but I remember it being a little bit hard to find as they want you to subscribe for a big dollar value. <br /><br />Once you sign up you can subscribe to new blog posts and separately to blog comments (I do both). The only problem I have is sometimes the comments don't make sense without the previous context. Someone might respond and use generic words or go off topic.<br /><br />For example, this post is about Charter, but then someone asks about STRZA and someone replies today asking about kk's thoughts on the latest spinoff (this is not a bad thing, just an observation). I didn't understand and thought I missed something on Charter because I didn't know about any spinoff. Joshhttps://www.blogger.com/profile/12028228587020987588noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-58777867477938409682014-03-14T13:48:24.771-04:002014-03-14T13:48:24.771-04:00I have no idea. Blogger sends me an email when th...I have no idea. Blogger sends me an email when there is a comment posted, but for other readers, I don't know. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-53763964550637005662014-03-14T13:46:02.979-04:002014-03-14T13:46:02.979-04:00My thought was, wow, these guys are busy! But then...My thought was, wow, these guys are busy! But then Malone has been busy like this for years and things have usually turned out really well. By having different entities focus on different things is a good thing, especially for an entity like Malone that uses a lot of debt/financing.kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-39932326211346597162014-03-14T13:36:36.863-04:002014-03-14T13:36:36.863-04:00Is there a way to see the most recent comments acr...Is there a way to see the most recent comments across all the blog posts, instead of searching by the blog and going down to the comments section? Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-76305051025853995112014-03-14T13:35:17.746-04:002014-03-14T13:35:17.746-04:00Was curious if you had any thoughts on the new spi...Was curious if you had any thoughts on the new spin-off, rights offering, etc. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-26173441879352274792014-02-24T08:21:07.632-05:002014-02-24T08:21:07.632-05:00Should probably mention that Buffett owns a good c...Should probably mention that Buffett owns a good chunk of STRZA as well (Unless it was Todd or Ted, but I think it was Buffett himself). Value Dharmahttps://www.blogger.com/profile/07126176107202839110noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-43735579648451431812014-02-23T16:40:44.339-05:002014-02-23T16:40:44.339-05:00Hi,
That's a good point. It's a spinoff ...Hi,<br /><br />That's a good point. It's a spinoff (or spinee) and if it's a magic formula stock, maybe it's a lollapalooza; it's a cannibal too. People tend to see LMCA and LBTYA as the Malone vehicles (also CHTR) where we can expect some serious activity going forward, but STRZA has some serious free cash flow too. So it is definitely interesting. <br /><br />My initial reaction was that I didn't really have a strong view on STRZA going forward in a chord-cutting, over-the-top video world; I tend to view the STRZA channels as 'minor' channels. But this may obviously be wrong. <br /><br />I will take a closer look, and may post something if I find anything interesting. If I don't make a post, that doesn't make it a bad idea, of course. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-41555609388207825002014-02-22T18:25:08.527-05:002014-02-22T18:25:08.527-05:00Hey KK,
I'm wondering if STRZA intrigues you a...Hey KK,<br />I'm wondering if STRZA intrigues you at all. I know you mentioned its great performance since the spinoff in passing, but I actually just saw it pop up on Greenblatt's screen and realized it might be kinda cheap. Its also got HBO's former CEO and original content king spearheading its campaign to become more like, well, HBO. Its also getting close to that point in time where Greenblatt said in the genius book that spinoffs (or the companies that do the spinning off) become particularly attractive. Any thoughts?Value Dharmahttps://www.blogger.com/profile/07126176107202839110noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-3407051491294471102014-01-17T12:25:45.997-05:002014-01-17T12:25:45.997-05:00I don't know how to value CHTR. I haven't ...I don't know how to value CHTR. I haven't seen Malone or anyone else put some numbers on CHTR's valuation - its always been subjective. They say capex will go down in the future, etc.etc. <br /><br />The only number I see is $750mn of synergies with TWC - seems too small.<br /><br />It reminds me of biotech or financial stocks - its all hazy. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-22977703935461220182014-01-15T20:53:14.429-05:002014-01-15T20:53:14.429-05:00Good question. I think the Malone premium, if any...Good question. I think the Malone premium, if any, would be included in the market values of the holdings since we know Malone will create value out of them. Book value in Liberty's case is pretty much cash and investments. Some holdings are equity method (so you have to adjust for market value versus carrying value) and SIRI is consolidated. <br /><br />So 'adjusted' book value is a good approximation of the value of Liberty. <br /><br />The Malone premium exists in the holdings; for example, Charter went up a lot with Malone's involvement since we know he will use that as a vehicle to create some value. If that value is reflected in LMCA, there is no need to add another premium on top of that, right? <br /><br />But I don't know. Maybe others would argue that there should be a premium above and beyond that too, but I tend to assume the Malone premium is already reflected in the current market values of CHTR, LYV etc... <br /><br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-81339346034636400252014-01-15T20:07:37.819-05:002014-01-15T20:07:37.819-05:00Why book value as metric? Don't assets and Mal...Why book value as metric? Don't assets and Malone deserve a premium?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-35382393297927131632014-01-15T16:40:01.210-05:002014-01-15T16:40:01.210-05:00Hi,
I haven't updated everything (will wait ...Hi, <br /><br />I haven't updated everything (will wait for Q4 figures) but the value is probably around this area, maybe slightly higher. The value of LMCA is largely determined by the value of SIRI, which is now a consolidated sub. To get the value, I just took the Q3 book value and added the fair value difference (between market value and carrying value) of the large holdings (as of September 2013; things haven't moved too much). That would take you to $135/share, I think (using Sept 2013 shares outstd), and SIRI is up a little last year since consolidating it. <br /><br />Anyway, I may post an update once the Q4 figures are out... kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-69500290879926147782014-01-15T12:26:12.808-05:002014-01-15T12:26:12.808-05:00What do you think of the valuation here for LMCA a...What do you think of the valuation here for LMCA at $136/share?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-26236305356384980502013-12-04T13:42:45.537-05:002013-12-04T13:42:45.537-05:00SIRI looks expensive on an EV/EBITDA basis, but th...SIRI looks expensive on an EV/EBITDA basis, but the key is they have tons of free cash, so it is still very attractive, particularly if they keep growing (and they think they can keep growing). <br /><br />CHTR is still just finishing up with their transformation. Rutledge was on CNBC the other day and he thinks there is a lot of room for CHTR to grow by increasing revenues per households passed, products sold per customer etc. Those metrics are low at CHTR because of many years of mismanagement and the resulting bankruptcy. Profits and free cash will grow to going forward. <br /><br />As for TWC, Rutledge said they don't need TWC to grow; they can grow on their own, and there are other cable systems out there that they can acquire (like they just did earlier this year).<br /><br />As for overpaying, I don't know. Malone is involved and he is not the type to overpay, I don't think. They will sharpen their pencils. If anyone is going to do a deal, there are few people who you want to be on the same side on as Malone... <br /><br />There are other Malone entities too, Liberty Interactice and Liberty Global that you can look at too. I notice a lot of the good funds own a lot of Liberty Global and Malone did say that the 'potential' going out is going to be Europe; that's where the interesting opportunities are. I haven't done much work on those two, though... <br /><br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-47686751742651797922013-12-04T12:41:17.907-05:002013-12-04T12:41:17.907-05:00I own LMCA, but feel it is overvalued. Don't C...I own LMCA, but feel it is overvalued. Don't CHTR and SIRI look overvalued compared to DaVita? <br /><br />CHTR's growth rate is low (H1 2013/H1 2012 = 4.8%), and there are stronger bidders jumping in for TWC - i.e. Cox and Comcast. I don't see how CHTR can make much money if it overpays for TWC. If it doesn't buy TWC, how does it grow? <br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-47139656658772914952013-06-04T13:22:50.847-04:002013-06-04T13:22:50.847-04:00This blog is really informative i really had fun r...This blog is really informative i really had fun reading it.<br />Paul Smithhttps://www.blogger.com/profile/03094416844520524743noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-13156500508656580082013-05-29T12:50:09.683-04:002013-05-29T12:50:09.683-04:00Great stuff but the next special situation to be l...Great stuff but the next special situation to be looked at is the one just mentioned on CNBC FNM & FRE pfds. 120wallacehttps://www.blogger.com/profile/17956088435795189799noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-44853213775741434582013-05-28T16:04:02.524-04:002013-05-28T16:04:02.524-04:00Hi,
I am not that familiar with them but I know ...Hi, <br /><br />I am not that familiar with them but I know that sector is cheap. One I looked at a while ago and didn't do anything with (maybe I should look at it again) is Symetra (SYA). WTM and BRK owns them and it's trading at a steep discount to book too and it's a potential spinoff play. With WTM/BRK ownership, I can't imagine that they would let SYA not do something about their cheapness. <br /><br />I think the last time I looked, I couldn't imagine what they could do to get their ROE up in this environment. I will look again but I don't know if I will see something else. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-26624366195277883592013-05-28T14:58:44.943-04:002013-05-28T14:58:44.943-04:00Do you have any thoughts Genworth Financial? Thoug...Do you have any thoughts Genworth Financial? Though the price is up a lot in the past 6 months, it may have special situation potential. The new CEO's plan is to sell non-core businesses and the stock trades at a major discount to tangible book value. On the other hand, life insurance and long-term care insurance are tough businesses. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-3560216861065981522013-05-27T17:31:09.514-04:002013-05-27T17:31:09.514-04:00Hi,
I may do a series on the Malone complex depe...Hi, <br /><br />I may do a series on the Malone complex depending on how much I have to say about it. He is well known, and well-regarded, and there is a lot of stuff written about his various entities on the net. (But that didn't stop me from writing about BRK etc...)<br /><br />So we'll see. <br /><br />I like LMCA as a concept, and I am taking a look at it as BRK (Weschler) seems to have bought some recently too. A lot of the 'value' there is in SIRI, which at first glance doesn't look all that cheap. So you would have to get comfortable with that too, I suppose. <br /><br />DTV is a great cash cow and BRK owns it too and I think it's a great investment just from that point of view. I haven't looked at it myself all that closely, frankly. This is actually another 'special situation'-type thing that I should be looking at and writing about. Shame on me for not doing so. <br /><br />Thanks for reading and stay tuned. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-46555315828756278732013-05-27T17:27:40.902-04:002013-05-27T17:27:40.902-04:00Hi,
I haven't taken a look at IBKR. I tend ...Hi, <br /><br />I haven't taken a look at IBKR. I tend not to be a fan of these discount brokers as they tend to have the boom/bust pattern driven by stock market speculative volume. I know that IBKR's founder is well-regarded and has created a great business. <br /><br />I may take a look at it at some point, but it's not a business that I am really all that interested in now... <br /><br />Thanks for reading. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-55335620042279770222013-05-27T13:13:31.856-04:002013-05-27T13:13:31.856-04:00What do you think about LMCA itself? It doesn'...What do you think about LMCA itself? It doesn't trade at much of a premium to underlying assets, so you get Malone's expertise for free. Since I'm a big believer in Malone I started a modest position early this year in this stock. BTW, I also think Charter is very interesting, however I just want to leave it up to Malone to allocate capital as he sees fit.<br /><br />How about DTV? It was one of Malone's largest positions at one point (not sure about now). Berkshire seems to be a big fan of the stock. <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-52780394986700587502013-05-27T10:19:17.252-04:002013-05-27T10:19:17.252-04:00Have you ever looked at IBKR?
Thanks
RayHave you ever looked at IBKR?<br /><br />Thanks<br />RayAnonymousnoreply@blogger.com