ATUS - Undervalued Levered Equity Stub With Ick Factor
Long Altice NV — 136% upside by 2020 in base case
Undervalued Levered Equity Stub With "Ick Factor"
Investment Thesis
Altice NV (Altice Europe post spin ALVVF) plans on spinning off its US division (Altice USA) by the end of 2Q 2018. At todays prices, you would recover 83% of your investment in Altice NV with Altice USA shares by the second quarter after the spinoff. Altice Europe stub, which trades at a c.25% levered free cash flow yield, the lowest valuation in its history, is being priced like roadkill. By not going bankrupt and