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Elie Rosenberg

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  • CSG Systems: Taking It to the Next Level? [View article]
    Thanks for the comment Pill. It is interesting that a business like CSG that all things considered has done pretty well over the last decade has done nothing for those holding shares since 2001. But I am not sure it is due to management incompetence.

    The AT&T/Comcast litigation that was settled in 2003 hammered both the stock and the company as it drastically lowered pricing for its largest customer (and they had to pay out $100 million to make up for prior overpricings). Even without that the margins they were making would have reverted to the mean one way or another over time anyway. They don't have that much of a long term moat. The stock price in 2001 was based on unsustainable earnings.

    The only real big management spend of cash before Intec was the Kenan acquisition, which they were lucky to almost break even on. We will see what happens with Intec.
    May 30 11:24 PM | 1 Like Like |Link to Comment
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