Re: Cable and CHTR
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given a 6% (modest when compared to CVCs projections) increase in ebitda for CHTR at a 11x multiple puts them at right around $8.50 a share as well.
i took ebitda, debt and shares from yahoo so they might be off.
((1960*1.06*11)-19340)/408=$8.61
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Basic thesis is that people are underestimating the ebitda growth - this can be close to 15% for many years as they rollout VOIP and start marketing more aggressively in general again. Worst thing that could happen for charter is interest rates spiking.
Best news is that this stock is barely on people's radar screen despite the fact that it is a substantial company ($22Bish ent value). Otherwise, the leverage works for us here as things are getting better and this will start to hit people's radar screens. I own CMCSK as well, but CHTR will scream if that article I posted is right.
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