Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Ascent Capital Is Unmonitored Even With A 20% Free Cash Flow Yield

Ascent Capital (NASDAQ:ASCMA) has quite a colorful corporate history. It was started in 2000 within the Liberty Media (NASDAQ:LMCA) conglomerate structure to roll up movie post-production assets. In 2005, the business was spun out to Liberty shareholders, along with Discovery Communications (NASDAQ:DISCA). In 2008, Ascent was spun out from Discovery Communications. Finally, in 2011, Ascent bought Monitronics, a home security monitoring business.

Because of all the machinations of this business over the years, I believe it remains relatively unknown and lacks investor coverage. What remains is a valuable home security monitoring and home automation business (Monitronics), which is both capital-light and throws off considerable free cash flow from its visible revenue stream.

Today, Monitronics...

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