|
|
|
|
||
Re: LVLT ebitda growth, a planNot knowing much, this would be a fix it once and for all plan for me: 1) stop the div and borrow $10+bn 2) do a full scale capex build to take smb and consumer share from cable, etc where it makes sense. in theory you take share from nonfiber. 3) also if it makes sense, i.e. if you are really the low cost operator on incremental capex builds, cut prices to increase volume. Force vz out of noncore business wireline market by making them choose 5g over an expensive wireline upgrade 4) invest $200 mn a year in tech product in a separate subsidiary owned 20% (w cliff/vesting) by smart young ex bigtech. pay for this with more aggressive cost cuts and reduced C level bonuses until they can start growing the biz 5) build 2 new smb sales teams and the one who executes better in 6 months will be the new sales head 6) while you are at it replace 70% of board esp the bankers with young tech minititans (who will know if the tech team you hire is any good and which trends are the trends) and ex govt who can help grow the biz. one PE/banker is more than enough and tbh they are kind of a turnoff to real tech unless they have built street cred by running a real biz successfully. (speaking as a mostly finance person w tech friends) 7) do the math so this all adds up, communicate and post the goals as the basis for any incentive comp. 8) just maintain the debt ratio but make sure you turn the revenue ship around hopefully this would make it into a long term compounder vs a "cigar butt" The other alternative is a PE approach 1) bring in a new highly incentivized team who will fire deadwood and increase sales 2) cut G&A by 30% 3) stop capex, except for very high payback 4) separate the business into growth and harvesting so market understands and can price separately. grow the growth biz 5) don't repay debt, in fact borrow more to max out combo of dividend and share buyback. in 3 years you can pay out/buyback 100% of the mkt cap 6) same on the other steps as above except for the capex 7) sell either or both biz at some point before the lack of investment shows up or we can business as usual and wait 10-20 more years. |
return to message board, top of board |
Msg # | Subject | Author | Recs | Date Posted |
170813 | Re: LVLT ebitda growth, a plan | leroyt | 1 | 11/27/2020 7:54:57 PM |
170816 | Re: LVLT ebitda growth, a plan (New Sale CEO) | from6454 | 0 | 11/27/2020 10:31:49 PM |