Seeking Alpha

Alaska Communications takes off; SA Pro author sees a value play

  • SA Pro contributor Alpha Bet argues Alaska's (ALSK +8.5%) big selloff over the last three months, recently exacerbated by disappointment over the telco's Q3 numbers, represents a major buying opportunity.
  • Alpha Bet points out shares trade near their book value of $1.93, that wireline revenue managed to rise 1.2% Y/Y in Q3 (in spite of the local voice disconnections plaguing U.S. telcos), and that Alaska's purchase of a 33% stake in Alaska Wireless Network gives it access to the state's biggest mobile network. The author does, however, admit Verizon's entry into the Alaskan market poses a risk.
  • With Alaska expected to produce 2014 free cash flow of $1.18/share and revenue of $292M, the author gives the company a fair value of $2.60/share
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs