SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hiram Walker who wrote (902)5/21/1997 10:50:00 AM
From: WTC   of 12823
 
Tim, you missed the point on penetration -- the 40% floor applies to their current business: multichannel video. A cable MSO on a trajectory to a 40% market penetration for video is in deep trouble. They are undoubtedly in technical default of their debt covenants. This kind of crippled company needs capital to upgrade their network to support new services and revenue streams; should they come to you for the capital? Any capital they can get will be "high yield debt", you can be assured.

New revenue streams are possible, even likely over time, but if you run the pro forma financials on moving the bread and butter revenue level from a current 62 - 72% penetration of video service at say, an average of $36 per month to 40% penetration, this company is flat on its back as far as exploiting the promise of the technology. If you were building a network without any plans for delivering video services, I can't imagine you would choose HFC. That is perhaps our departure on the technology assessment. I would put up with all those modulators and demodulators and other analog complications only for the benefit of having a nice video platform. My point was me-too competition for cable's core business -- video -- was a hard economic nut to crack. That is where the major cash flow will be for some time -- it looks like data will be an expensive business to enter, though it promises long-term profitability. Data cannot "save" the video business if video has tanked for a cable operator.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News