Boston Omaha: Undervalued Gem Or Dangerous Investment

(22min)

Summary

  • Boston Omaha, a sub-$500M market cap company, operates in billboards, broadband, and insurance, with high regulatory barriers and a low leverage of below 15% long-term debt to capital.
  • Despite internal turmoil and a recent CEO change, the company remains focused on its core assets and has initiated a $20M share buyback program.
  • The billboard business is highly attractive due to stable revenues and regulatory restrictions, while the broadband segment faces uncertainty but potential growth through government grants.
  • Investors have seen negative returns over the past five years, and the lack of dividends means returns are solely dependent on share price performance, which has been poor.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

Downtown Omaha Nebraska Skyline

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Dear readers/followers,

In this article, I'll be looking at a sub-$500M market cap business, but one that has received (and rightly so) quite a bit of attention from many investors over the past few years. This is one of those

The company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.

This article was written by

34.12K Followers

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.

He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

While this article may sound like financial advice, please observe that the author is not a CFA. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

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