Link to Slide Deck: Cable ONE, Inc. ("CABO") Slide Deck [5/3/2016]
Brief Summary:
- Cable ONE is the 10th largest cable company in the U.S. and is most known for their radical strategy change in 2012 whereby they de-emphasized video and telephone (the triple play bundle with broadband) and focused heavily on residential broadband and business services
- They are often well thought of in the value investing community due to their jargon around "free cash flow" and "margins" and "we are where the puck is heading", as well as attracting a solid Board of Directors with notable investing names such as Tom Gayner (Markel Corp.) and Wally Weitz (Weitz Investments)
- I would only buy the company if it got cheap enough (low $400s/high $300s) primarily due the likelihood of being an acquisition candidate in the next 1-2 years as the cable industry consolidates; otherwise, there are better investment opportunities in the industry.
