OTEL Simple explanation why OTEL is a screaming buy...
within just three quarters of 2014 OTELCO has generated so much free cash, that they were able to reduce the debt by the same amount as is the value of their current Market Cap!!! In just 9 months!!!
Do you understand this? This is the undiscovered CASH COW...Dream of every investor...If you decide to buy 100% of the company now for current PPS, in one year the company generates from contracts more free cash, that you have paid for it :DDD. And they have subscribed 10% more clients between Q2-Q3 earnings period...
Only problem here is that the debt is so high, that the book value is negative -8.50 usd/share.
This is probably why we are that lucky to buy it now that cheap. But they have reduced the debt by 15% only in three quarters...As walk57 has written elsewhere - the banks love such companies. They make the banks live, the banks do not call bancruptcy on CASH COWS :D
Based on latest 2014 Q3 numbers released yesterday, their operations generates cash to get annual diluted net INCOME per share in level exceeding 1.60 USD!!! that makes OTELCO undiscovered undervalued baby with fair value 300-400% higher...(if there is no debt, it would be even higher, they are reducing now the debt in pace over 15% per anum)
