Key insights
- The author expresses a bullish view on Charter Communications (CHTR), citing its low PE ratio, high cash flow yield, and potential for buyback resumption after regulatory approval of the CHTR-COX merger. They believe the stock is oversold due to high short interest and that EBITDA from the merger will offset broadband losses. Insider buying at a higher price point further supports their positive outlook.
Discloser: I own 4676 stocks of CHTR bought at 148.53$ as of TODAY (690k usd) (I
Here is the deal; 1. Net income expansion story based on lower capex forecast 2. 4 PE on a CF yield of almost 25%. 3. BuyBACK on PAUSE bc of California regulation; FCC already approved CHTR-COX merger. When the buyback starts back, PE expansion to a more reasonable 5-6 PE 4. EBITDA incrementation from COX merger will partially offset broadband losses 5. Insider buyback a 178$. 6. Heavy debt well covered by CF yield and FCF 7. High short interest on a 3.9 PE as of today makes it even more a oversold condition. Astrology puss-pussy adepts will say "the chart and the graphics aint looking good and the moon is rising under my balls". I say to them we'll see little poney