While we acknowledge that there is a far greater likelihood that the Dolan family acquisition of CVC is approved by shareholders given the volatility in the broader market, the significant downturn in the financing environment and the weakness in the cable sector following across the board disappointing Q2 ’07 results, we continue to believe CVC…
T-Mobile saw weakness in its pre-paid business and gross margins continued to fall like the rest of the wireless industry but strong progress in post-paid and lower customer acquisition/retention costs delivered slight upside to top and bottom line numbers. Click here for a table that compares Q2 results versus our estimates. T-Mobile also gave out…
NII Holdings continues to acquire additional spectrum at low costs which we think helps to reduce the longer term risk of iDEN. NII recently won an auction for a nationwide license in Peru that provides them with 35 MHz of spectrum at 1.9 GHZ. The company committed $26 million which we estimate indicates a price…
Ever since Telemar announced it was planning a share restructuring that would have diluted Preferred shareholders by 50% we have spent time examining the rights of Preferred shareholders in Brazil. The deal never got approved and the company came back with a cash tender offer with less dilution. That didn’t look like it would go…
The following are some of the “tougher” questions we would have liked management to be asked on yesterday’s conference call (unfortunately, we were not chosen from the controlled queue): Why Do Investors Have to Wait Until a Post-Dick Parsons Era for Change? It is increasingly clear to us that Time Warner is way too complicated…
Yesterday the FCC released a summary of the rules for the 700 MHz spectrum auction and as many expected they included restrictive provisions which require open access of devices and applications on a third of the spectrum being auctioned. We don’t think these rules will have any impact on the industry other than perhaps wasting…
We downgraded Clearwire to Neutral from Buy based on Q2 results reported last night that were below our estimates. We were surprised by the level of sequential decline in subscriber growth in Q2. While management previously highlighted seasonal trends, we incorrectly thought the market opportunity, compelling product and early stage of the company could buck…
While we have been relatively quiet on Disney over the past nine months (this is actually our first note since Nov. 2006), Disney shares have also been relatively quiet with shares essentially flat over that time period compared to the S&P 500’s increase of over 5%. We are raising our EPS estimate for Disney for…
With CD unit sales down 19% ytd in the US (with dollar sales at least a few points worse, due to falling wholesale prices) and total industry unit sales (physical and digital) down 8.4%, an artists’ reliance on touring profits continues to grow. Global piracy concerns are growing and there is no end in sight…
With CHTR trading at $4.01, leverage at 9.6x (as of the end of Q1 ’07, annualizing Q1 EBITDA) with over $2.50 per full-year ’07E EBITDA multiple point, CHTR is an inherently volatile stock. While rising macro concerns about the US debt markets should not be ignored, it is worth remembering that CHTR does not have…
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