Monday, August 26, 2019

Altice: a puzzle

In November 2017 I wrote: "Conclusion: ALTICE is very difficult to evaluate. The company’s financials have changed drastically in the past years due to deal making. Sales have increased dramatically and could result in fantastic earnings for shareholders going forward, but it is not a company for the Defensive Investor. ALTICE might be cheap at a price of under 10 Euros per share, but belongs in what CharlieMunger calls the “too hard pile.

Since then Altice spun-off Atice USA. If I understand correctly, Altice shareholders got 0,41 Altice USA shares per share of Altice International held. The current Altice USA (ATUS) shareprice is $27,83 x 0,41 in Euros = EUR 10,26 + Altice Europe EUR 3,90 today = EUR 14 almost a 100% increase in >Quoted Value< since 2017.

Since 2017 I have read "Cable Cowboy" about John Malone. It makes it clear that a Benjamin Graham Defensive method of evaluating a cable company (based on Earnings and Book Value per share) is not helpful.

Still too difficult for me, especially at a time of technological disruption in broad- and narrowcasting (streaming) at this moment.

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