Bireme Capital
  • Home
  • Blog
  • CIO Corner
  • In the news
  • About us
  • Contact
  • Store

Uniti: Super Cheap REIT or Going Concern Risk?

2/19/2020

0 Comments

 
Picture
Uniti Group is a weird little company that trades 9x EBITDA and arguably a ~20% free cash flow yield to the equity.

The company owns fiber optic cables and copper wires and leases them to ISPs, mobile wireless providers, and businesses. 

Comps

Owning fiber-optic cables can be a good business. Fundamentally, they are the key asset behind a roughly $70b market in the US - fixed broadband internet (and increasingly important in mobile wireless as well). Once deployed, fiber is costly to compete with: the only real way to do so is to “overbuild” your own fiber. Estimates of the cost to run fiber to one household varies between about $700 for telcos to wire existing customers to $1250 per home for a near-nationwide build-out. Costs are even higher in some rural areas where homes are far apart.

Read More
0 Comments

      Follow CIO Corner.

    Subscribe

    What this is

    Informal thoughts on stocks and markets from our CIO, Evan Tindell.

    Nothing on this page should be considered investment advice. We may comment on stocks that our clients hold positions in. At the time of publication, we believe all information to be correct as presented. We make no commitment to update posts if the facts change.

    Archives

    October 2022
    August 2022
    March 2022
    December 2021
    October 2021
    July 2021
    April 2021
    December 2020
    June 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019

    Categories

    All


Telephone

813-603-2615

Email

info@biremecapital.com

Disclaimer

See here for important disclosures and see here for our fees.
  • Home
  • Blog
  • CIO Corner
  • In the news
  • About us
  • Contact
  • Store