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 : UCOMA UnitedGlobalCom
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jjs_ynot who wrote (92)2/7/1999 4:40:00 PM
From: Mad2  Read Replies (2) of 489
 
Cable business very difficult to evaluate based on ratio analysis. By their nature they require a fair amount of capital and it is in shareholder interest to leverage equity with debit. This can lead to neg book as in the case of UIHIA (depreciation eaten through equity). This spin of UPC amounts to recapitalization. Breakeven date for cash flow and future cash flow analysis is the way to value these business's. UPC cash flow assumptions are very reasonable. Attractiveness here is the cable is viewed as a franchise with lots of barriers to entry and "unrealised" growth potential (via broadband I Net and telephone).
I spent two days trying too understand this while UIHIA went from 34 to 44 when I jumped in.
Dave I've got a great value play called QFAB. Right now it's at .59 of book and a leadership position in their business. Unfortunatly I bought when it was at .75 to .85 of book ($5-6/share as it was a great buy then) and now it's $4/share. It's a super value right now, but has been dead money for 3 months and may continue to be dead money for another 2-6 months. Additionally if the market suffers a setback so will QFAB and then it'll be a really really super buy. In the last two weeks UIHIA has nearly doubled. Go figure.
Regards, Mad2 (part time value investor)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News