2024-03-18 08:57:47 ET
Summary
- Charter Communications uses its net debt to finance share repurchases, M&A, and special projects with higher returns than the interest on the debt.
- The majority of Charter's debt is fixed at a low interest rate, with most of it due after 2026, providing stability and potential for refinancing.
- Charter's return on net tangible assets is high compared to other communication companies, indicating profitable investments and cushion for interest payments.
A Darling Among Super Investors
Charter Communications ( CHTR ) flipped on my radar when I was looking at some recent buys from super investors and noticed Charter ranked pretty high on the list last quarter. Several funds and investors have 10-20% positions in Charter or a combination Liberty Broadband Corporation ( LBRDK ), which owns 26% of Charter. Furthermore, Chris Winfrey, Charter's CEO purchased over around $1.5 million worth of shares on 2/07/2024. Charter currently stands at a significant discount to when super investors bought and around the same price as Winfrey's purchase price....
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Charter Communications: A Misunderstood Leveraged Equity Opportunity