Use this link to access my Google Drive spreadsheet. It may or may not be helpful in figuring out whether one should buy CHTR or LBRDA/B/K. Please be careful because the spreadsheet may contain errors…
Advertisements
liberty broadband LBRDA/B
(LMCA) Liberty Broadband spin-off
Liberty recently completed the distribution of 2 class C non-voting shares (ticker symbol LMCK) for each LMCA or LMCB share. Now Liberty intends on completing its spinoff of Liberty Broadband (LBRDA/B/K). Each shareholder of LBRDA/B/K will be slated to receive rights (LBRKR) to purchase shares of LBRDK. Liberty Broadband’s S-1 was filed on July 25.
To summarize: I think that both the parent and the spinoff will be attractive stocks. I plan on owning both. It could make sense to be overweight Liberty Broadband.
Both parts will essentially consist of high quality businesses with high growth (Sirius XM and Charter). I don’t believe that this spinoff will result in a special situation where one piece will contain significantly better assets than the other piece. I think that it is a better idea to own both rather than just Liberty Broadband. Because there will be a lot of leverage underlying the companies, it is probably a good idea to diversify.
(LMCA) Is there hidden value in TruePosition?
I’m interested in the value of TruePosition since it may be a vehicle for hiding value in the proposed Liberty Broadband spinoff. The real story seems to be complicated.
- The core business seems to be in decline.
- I have my doubts about Craig Waggy, the new CEO. He was associated with improper accounting at Gemstar-TV Guide International. The SEC brought a civil action against him. Waggy paid a $25k civil penalty.
- The company has upside from patent trolling and from suing other companies for antitrust.
