Shaw Acquisition Not A Lumen Price Discovery Catalyst

Summary

  • Shaw was acquired at above a 10x multiple, could the same apply to Lumen's business?
  • Lumen has a more resilient and international wireline, but there are reasonable synergies in the Shaw acquisition.
  • We don't think that the Shaw precedent acts as a Lumen value catalyst. Story here continues to be resilience and dividend.
  • Looking for a portfolio of ideas like this one? Members of The Value Lab get exclusive access to our model portfolio. Learn More »

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Lumen (NYSE:LUMN) is one of our higher dividend holdings. We like it because it has infrastructure economics, absurd cash generation, resilience against overblown threats and a very ample dividend. Lumen's price is developing favorably for our position, but we

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This article was written by

The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.

They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LUMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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