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Dealint's avatar

You don't see smaller/regional players like $LUMN, $FYBR, $SHEN, $WOW, $CABO, $ATNI, $LICT as comps? Not that they dramatically change the picture, of course.

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Cornerstone Value's avatar

Yeah, very fair question. The fiber overbuilders like Lumen and Frontier, I've generally considered in their own category. The multiples aren't that different, but they tend to be really bad businesses that will live and die by their gamble on fiber.

The other stocks you named are basically dying cigar butt businesses mostly facing significant financial distress. Certainly not multiproduct market share leaders like GCI. That's not to say they're not potential investments, but the risk/return profile and market position are substantially different. LICT I'm unfamiliar with...

If you pile all these into one big comp group, the 6.0x multiple will still look reasonable, though (which is why I think it's conservative).

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Dealint's avatar

Makes sense, thanks.

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N.R98's avatar

Thanks for flagginggg

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Divergent Capital's avatar

Great writeup. I also recently wrote-up GCI on my blog which I think you may find interesting. Would love to chat to you about GCI. I'm also on X under the same username and have recently followed you.

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