Update 2: Cablevision’s Optimum Wi-Fi has launched a TV ad campaign attacking the poor quality of AT&T’s network and highlighting that data usage on Optimum Wi-Fi is free and unlimited in contrast to AT&T. We have embedded both new commercials on our blog (see below) – both are pretty creative for a cable company. Expect…
AT&T’s introduction of usage based data rate plans today represents incremental pricing pressure for integrated devices/smartphones which could increase AT&T’s market share and further accelerate the migration of customers to higher ARPU integrated devices/smartphones from feature phones. So while ARPU’s within device category continue to decline at a rapid rate, the mix shift to higher…
Bob Iger, Disney’s CEO, is set to speak to investors later this morning and we have a burning question: Why is it in the best interests of the Walt Disney Company to allow me to rent a copy of Disney’s $1 billion blockbuster movie, Alice in Wonderland for only $1, as we did yesterday evening…
Apple appears to be selling more iPads than we thought even though our estimate was likely above consensus. Apple announced that it had sold 2 million iPads in the first 60 days. At that run rate, it should be able to top our estimate of 2.75 million for the June quarter. While there might have…
We are initiating coverage of Sprint with a Sell rating and a $3.00 price target because we believe investors may have become too optimistic about near term catalysts that could fail to materialize. Our $3.00 price target implies 4.5x EBITDA and 3.7x EBITDA if the company sold its stake in Clearwire at the current price. …
We have long wondered why Mediacom was a public company, given its accelerating free cash flow, significant NOLs and balance sheet which has a cost of capital that is as good, if not better than its much larger industry peers. In turn, it is not surprising to see Mediacom founder, Chairman and CEO Rocco Commisso,…
While we are forecasting Comcast’s EBITDA growth to slow to low-single digits in 2011 from mid-single digits in 2010 (abbreviated model in Exhibit 1, beginning on page 3), declining capital expenditures have enabled a steady share repurchase program and a dividend (2% yield currently). We estimate Comcast (CMCSA) is trading at only 5.3x 2011 EV/EBITDA…
Time Warner Cable’s free cash flow has positively surprised us over the past year, more than compensating for weaker RGU growth. In 2010, RGU additions are rebounding, video ARPU growth is accelerating year-over-year (video up nearly 5% in Q1 2010), and strong commercial growth is becoming more relevant to overall results. The combination of these…
While News Corp. remains an inexpensive stock trading at only 5x calendarized 2011 EV/EBITDA and 13.5x calendarized 2011 free cash flow, we believe the stock is unlikely to move notably in the near-to-intermediate future. Therefore, we are initiating coverage with a Neutral rating on both NWSA and NWS. • We fear investors will be disappointed…
With all the discussion about Sprint’s alleged turnaround and its upcoming launch of the HTC EVO, investors may have forgotten that the hottest phone on the market is likely to get a refresh very soon. Today’s price cut of the 16GB iPhone 3GS to $97 from $199 at Walmart might be a reminder to people about the…
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