todays meeting is going to be positive | CTL Message Board Posts

CenturyLink, Inc.

  CTL website

CTL   /  Message Board  /  Read Message

 

 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  168131 of 168250  at  6/30/2020 3:53:16 PM  by

enron-hubbard


 In response to msg 168128 by  greyheadguy
view thread

Re: todays meeting is going to be positive

 

As I read the investor presentation a few things occurred to me. In no particular order:

n This is what happens when you combine valuable fiber assets with an ice cube.

n Why the legacy CTL assets should be sold or spun off in a tax efficient manner. I guess they did try to sell it and failed to get an acceptable valuation.

n That the LVLT decision to do a partial stock deal to be acquired by CTL was a major error of judgement.

n I noted that slide 19 has a typo. The word “historic” should be “historical”. No big deal

n THAT THE VALUTION DISCONNECT IS REAL. But as currently constituted an outright sale without fixing the problematic nature of the legacy CTL assets is unlikely. This is why a serious discount to a sum of the parts value applies. Who would adopt the baby when it has two wooden legs?

n I’m glad that they are serious in terms of identifying the valuation issues.

n Perhaps the gating issue related to any spin-off is the amount of debt the spun off assets could support. If it is 2.5x then the debt that would be assumed is $15 MM. This would leave legacy LVLT with $18MM (6x EBITDA). This is perhaps too high given that it is likely that all debt would be required to approve any transaction.

Anyway this is all interesting and something to think about while the stock diddles around in the $10 range.



     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 10     Views: 226
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

Replies
Msg # Subject Author Recs Date Posted
168139 Re: todays meeting is going to be positive c1p2a34 7 6/30/2020 6:52:43 PM
168147 Re: todays meeting is going to be positive Professor Longhair 8 7/1/2020 10:43:18 AM






About Us  •  Contact Us  •  Follow Us on Twitter  •  Members Directory  •  Help Center  •  Advertise
Not a member yet? What are you waiting for? Create Account
Want to contribute? Support InvestorVillage by donating
© 2003-2019 Investorvillage.com. All rights reserved. User Agreement
   
Financial Market Data provided by
.


Loading...