muscleman Posted August 5, 2015 Share Posted August 5, 2015 I don't understand why LBRDA is a better buy than CHTR. They bought CHTR around $70-90 in 2013. Now CHTR has gone up a lot and they will have to pay quite a bit of tax (35% corp rate) if they sell CHTR. Of course they won't do that stupid thing. If they distribute the CHTR shares to you, what's your cost basis? Is it the same $70-90 cost basis that they originally bought CHTR? If so, you will suddenly owe a lot of tax liability when you sell the CHTR shares. Does anyone know how the cost basis is determined when they spin off CHTR? Link to comment Share on other sites More sharing options...
folivera13 Posted August 13, 2015 Share Posted August 13, 2015 Interesting snipit from LBRDA's 10Q. Liberty can reduce the funding amount of the $4.4bn LBRDK share offering by 25% and use other means of financing (probably debt?) to cover the 25% reduction. Assuming Liberty uses debt, this could juice the Co's returns- which also justifies investing in LBRDA/K over CHTR. "Additionally, as discussed in note 5 of the accompanying condensed consolidated financial statements, in support of the Time Warner Cable Merger, the Company expects to issue $4.4 billion additional shares of Liberty Broadband Series C common stock in order to purchase $4.3 billion in shares of New Charter. However, Liberty Broadband has the right, and may determine, to incur debt financing (subject to certain conditions) to fund a portion of the purchase price for such shares of New Charter, in which case Liberty Broadband may reduce the aggregate Series C share subscriptions by up to 25%, with such reduction applied pro rata to all investors." Link to comment Share on other sites More sharing options...
sc2248 Posted August 13, 2015 Share Posted August 13, 2015 I don't understand why LBRDA is a better buy than CHTR. They bought CHTR around $70-90 in 2013. Now CHTR has gone up a lot and they will have to pay quite a bit of tax (35% corp rate) if they sell CHTR. Of course they won't do that stupid thing. If they distribute the CHTR shares to you, what's your cost basis? Is it the same $70-90 cost basis that they originally bought CHTR? If so, you will suddenly owe a lot of tax liability when you sell the CHTR shares. Does anyone know how the cost basis is determined when they spin off CHTR? Muscleman, LBRDA is one of my biggest holdings. The reason I prefer to own it rather than straight up CHTR is that I get both the economic benefit of the CHTR business PLUS Malone and Maffei's capital allocation for free. The LBRDA holco gives them flexibility in buying more CHTR, or repurchasing LBRDA shares if the discount to NAV widens, or doing a rights offering, or bringing in hedge fund partners to help with TWC & Bright House acquisitions, or whatever else they see fit... Link to comment Share on other sites More sharing options...
muscleman Posted August 22, 2015 Share Posted August 22, 2015 I don't understand why LBRDA is a better buy than CHTR. They bought CHTR around $70-90 in 2013. Now CHTR has gone up a lot and they will have to pay quite a bit of tax (35% corp rate) if they sell CHTR. Of course they won't do that stupid thing. If they distribute the CHTR shares to you, what's your cost basis? Is it the same $70-90 cost basis that they originally bought CHTR? If so, you will suddenly owe a lot of tax liability when you sell the CHTR shares. Does anyone know how the cost basis is determined when they spin off CHTR? Muscleman, LBRDA is one of my biggest holdings. The reason I prefer to own it rather than straight up CHTR is that I get both the economic benefit of the CHTR business PLUS Malone and Maffei's capital allocation for free. The LBRDA holco gives them flexibility in buying more CHTR, or repurchasing LBRDA shares if the discount to NAV widens, or doing a rights offering, or bringing in hedge fund partners to help with TWC & Bright House acquisitions, or whatever else they see fit... So what's the tax status for LBRDA if they eventually decided to give out their CHTR shares? Do you have to pay tax on the cap gain they had due to their very low cost basis? Link to comment Share on other sites More sharing options...
muscleman Posted August 22, 2015 Share Posted August 22, 2015 I just received the following reverse split notice from IB. Why are they doing this? ::) CHTR@NASDAQ (Name: CHARTER COMMUNICATION-A) announced a reverse split effective 20150921. The terms of the split are 4521 : 5000. ISIN : US16117M3051 Please click here ( http://ibkb.interactivebrokers.com/node/1619 ) for information regarding IB's corporate action notification process. Please click here ( http://ibkb.interactivebrokers.com/node/1063 ) for important disclosure information. Link to comment Share on other sites More sharing options...
Liberty Posted September 16, 2015 Author Share Posted September 16, 2015 Interesting panel on media industry, which includes CHTR chairman: http://youtu.be/2uDFvorBQ30 Link to comment Share on other sites More sharing options...
loganc Posted September 18, 2015 Share Posted September 18, 2015 http://www.bloomberg.com/news/articles/2015-09-17/did-the-dolans-just-call-the-end-of-cable-with-cablevision-sale- Cable is over guys. Move along. Link to comment Share on other sites More sharing options...
folivera13 Posted October 1, 2015 Share Posted October 1, 2015 Profile on Cox Enterprises. Hard to see them sell their cable business, but there is always a price http://www.forbes.com/sites/abrambrown/2015/09/30/this-billionaire-knows-the-secret-to-saving-a-family-business/ Link to comment Share on other sites More sharing options...
giofranchi Posted October 14, 2015 Share Posted October 14, 2015 Great respect for Mr. Ergen... But of course I cannot like this latest move of his! Dish Network files FCC petition to deny Charter-TWC merger http://seekingalpha.com/news/2827876-dish-network-files-fcc-petition-to-deny-charter-twc-merger Cheers, Gio Link to comment Share on other sites More sharing options...
DeepSouth Posted October 14, 2015 Share Posted October 14, 2015 Great respect for Mr. Ergen... But of course I cannot like this latest move of his! Dish Network files FCC petition to deny Charter-TWC merger http://seekingalpha.com/news/2827876-dish-network-files-fcc-petition-to-deny-charter-twc-merger Cheers, Gio Ergen is deep in the FCC's shit list. This petition is getting sent to the shredder. Link to comment Share on other sites More sharing options...
Liberty Posted October 29, 2015 Author Share Posted October 29, 2015 Charter Q3 is out: http://ir.charter.com/phoenix.zhtml?c=112298&p=irol-newsArticle&ID=2104101 Key highlights: Residential customer relationships increased by 97,000 during the third quarter, versus 68,000 during the third quarter of 2014. For the twelve months ending September 30, 2015, residential customer relationships grew by 5.0%, or 290,000. Residential primary service units ("PSUs") increased by 180,000 during the third quarter versus a gain of 114,000 in the prior-year period, including residential video net additions of 12,000. Following the launch of Spectrum Business pricing and packaging to the small and medium business segment in March 2015, commercial customer relationships grew by 17,000 during the third quarter of 2015, including commercial video customers net additions of 4,000. Third quarter revenues of $2.5 billion grew 7.2%1 as compared to the prior-year period, driven by residential revenue growth of 7.3% and commercial revenue growth of 13.2%. Third quarter Adjusted EBITDA2 grew by 8.5% year-over-year. Excluding third quarter transactions transition costs of $12 million, third quarter Adjusted EBITDA grew by 9.7% year-over-year. Capital expenditures totaled $509 million in the third quarter of 2015, compared to $569 million during the third quarter of 2014. Excluding transactions transition capital expenditures, third quarter capital expenditures totaled $485 million. Third quarter free cash flow was $208 million, compared to negative free cash flow of $62 million during the prior-year period, driven by higher Adjusted EBITDA, lower capital expenditures and a positive working capital contribution. Link to comment Share on other sites More sharing options...
dwy000 Posted October 29, 2015 Share Posted October 29, 2015 Rumors of the death of residential cable appear to be greatly exaggerated. If you read the media reports, the proliferation of OTT video and new services would suggest that cable television is in its death throws. Results from the big cablecos would suggest otherwise. Chug on cash machine! Link to comment Share on other sites More sharing options...
ERICOPOLY Posted October 29, 2015 Share Posted October 29, 2015 Rumors of the death of residential cable appear to be greatly exaggerated. If you read the media reports, the proliferation of OTT video and new services would suggest that cable television is in its death throws. Results from the big cablecos would suggest otherwise. Chug on cash machine! In my house there is still a residential cable bill for the internet pipe. It will be terminated when there is a faster/cheaper wireless network. Hopefully that's coming in the next decade. Link to comment Share on other sites More sharing options...
dwy000 Posted October 29, 2015 Share Posted October 29, 2015 Rumors of the death of residential cable appear to be greatly exaggerated. If you read the media reports, the proliferation of OTT video and new services would suggest that cable television is in its death throws. Results from the big cablecos would suggest otherwise. Chug on cash machine! In my house there is still a residential cable bill for the internet pipe. It will be terminated when there is a faster/cheaper wireless network. Hopefully that's coming in the next decade. The internet pipe is why I think all the cable cos have massive moats around them and will continue to grow for the foreseeable future. Above I was actually referring to the video customers. With all these new OTT services, you'd think cable customers (the video ones) would be declining at double digit %'s. But the reality appears to be much different. On the internet side, I think the FCC classifying it under Title II has effectively squashed the likelihood of any new providers for quite a while. Not sure who would invest the $bn's to build out a competing network if the gov't can then come in and set your prices and force you to share with competitors. Link to comment Share on other sites More sharing options...
Liberty Posted January 4, 2016 Author Share Posted January 4, 2016 http://finance.yahoo.com/news/time-warner-cable-delivers-best-165000023.html Time Warner Cable Inc. (TWC) today announced that its full-year residential subscriber growth in 2015 was its best ever, highlighted by: Customer relationship net additions of 618,000 Video net additions of 32,000 High-speed data net additions of 1 million Voice net additions of 1.036 million Link to comment Share on other sites More sharing options...
folivera13 Posted January 5, 2016 Share Posted January 5, 2016 Interesting announcement given that they really don't need to prove anything to anyone- as CHTR will have its own operating plan for TWC which should reignite growth. The bear view would be that TWC is trying to show investors "how good they are doing" just in case if the deal does not go through. Any thoughts? Link to comment Share on other sites More sharing options...
Liberty Posted January 5, 2016 Author Share Posted January 5, 2016 I think it's probably basic psychology. If management has good results, they'll highlight them, it's good for their egos and shows that they aren't incompetents being rescued but were doing well on their own. Link to comment Share on other sites More sharing options...
folivera13 Posted January 5, 2016 Share Posted January 5, 2016 Agreed. It's the kind of thing management wants to do to get its stock price up and since their stock is driven by the CHTR, it opens up the possibility that they are doing it in case the deal does not go through. Link to comment Share on other sites More sharing options...
undervalued Posted May 18, 2016 Share Posted May 18, 2016 How is LBRDA, LBRDK suppose to be tracking CHTR's performance? So far the stock has lag CHTR badly. Link to comment Share on other sites More sharing options...
TheAiGuy Posted May 18, 2016 Share Posted May 18, 2016 How is LBRDA, LBRDK suppose to be tracking CHTR's performance? So far the stock has lag CHTR badly. It's been more or less fine, but with a discount. Today's lack of tracking has to do with the 10:9 exchange in old CHTR for new CHTR shares. Link to comment Share on other sites More sharing options...
Liberty Posted May 18, 2016 Author Share Posted May 18, 2016 How is LBRDA, LBRDK suppose to be tracking CHTR's performance? So far the stock has lag CHTR badly. It's been more or less fine, but with a discount. Today's lack of tracking has to do with the 10:9 exchange in old CHTR for new CHTR shares. More details here: http://ir.charter.com/mobile.view?c=112298&v=202&d=3&id=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNDQ0MjEwJkRTRVE9MSZTRVE9NDgmU1FERVNDPVNFQ1RJT05fUEFHRSZleHA9JnN1YnNpZD01Nw%3D%3D (the ratio is 0.9042 to be exact, fractional shares get cash) Link to comment Share on other sites More sharing options...
chesko182 Posted April 29, 2018 Share Posted April 29, 2018 Overview of the Malone cable and media empire, covers many of his companies (not just LBRDA): http://www.jnvestor.com/malone/ Very good post! :) +1! I can only imagine the insane amount of research that went into this post and I particularly like Jules's writing style. I would go so far to say that this is the only post you need to read to invest in any of the Malone companies… does anyone have an alternate link? it seems to be broken Link to comment Share on other sites More sharing options...
chesko182 Posted April 29, 2018 Share Posted April 29, 2018 I think I've found it for those interested: https://www.scribd.com/document/273949680/John-Malone-and-His-Cable-Media-Empire Link to comment Share on other sites More sharing options...
MrB Posted April 29, 2018 Share Posted April 29, 2018 I think I've found it for those interested: https://www.scribd.com/document/273949680/John-Malone-and-His-Cable-Media-Empire +1 Link to comment Share on other sites More sharing options...
WayWardCloud Posted April 30, 2018 Share Posted April 30, 2018 Thank you so much chesko182 ! Link to comment Share on other sites More sharing options...
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