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Strategies & Market Trends : Value Investing

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Mattyice

To: Jurgis Bekepuris who wrote (53538)	3/13/2014 2:10:18 AM
From: Spekulatius	1 Recommendation Read Replies (1) of 78625

In a way LMCA is cheap, since it trades below the value of it's holdings. There is 50% in Sirius, 26% in Charter (+some warrants to buy more) a Livenations stake and some odds and ends like TruePosition. The public holdings are valued at more than 18B$, minus ~800M$ in debt, while the market cap is ~14.6B$. So we have at least a 20% discount to NAV based on the public holdings alone, and the odds and ends are worth something as well. Adjusted FCF target for this year is ~1.1B$, so that is a 7.5% yield on the market cap, (if you believe the heavily adjusted numbers). These are pretty reasonable valuation numbers based on several metrics. Then, last not least, you are riding along with one of the best jockeys in the media business. I think it deserves some consideration even from a value perspective, especially considering that Malone is running the company and has been compounding value at a 33% clip since the spinoff.

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