Yet Another Value Podcast Andrew Walker

Alex Morris, Founder of TSOH Investment Research, returns to Yet Another Value Podcast for the third time to chat with Andrew about the Media and Cable sectors in 2023. The Media and Cable sectors move at a mile a minute and it was time to have Alex back on to sift through all the noise. This conversation covers everything from: how mobile carriers think about fixed wireless, Charter vs. Cable One & T-Mobile, does Disney have an IP problem, and much more.

For more information about Alex Morris and subscribe to his research service, TSOH Investment Research Service, please visit: https://thescienceofhitting.com/

You can Follow Alex Morris on Twitter @TSOH_Investing: https://twitter.com/TSOH_Investing


Chapters:
[0:00] Introduction + Daloopa

[2:22] Media and Cable space - high level thoughts on 2022/beginning of 2023

[4:30] Rewinding to better understand current media/cable infrastructure and how Alex thinks about fixed wireless

[8:57] How mobile carriers talking about fixed wireless

[12:08] Why Alex has Charter and Comcast in his portfolio?

[14:43] How does Alex think about Comcast being potentially being valued with conglomerate discount?

[19:05] Charter vs. Cable One and Charter vs. T-Mobile

[23:11] A bit more on T-Mobile

[27:54] Why Alex thinks you can achieve risk-adjusted alpha investing in Charter?

[31:53] Understanding Charter's CAPEX story

[33:45] Cable assets, Fiber assets + M&A

[37:09] Final thoughts on Cable/Fiber conversation

[40:06] What Alex is seeing in the Media business that is so attractive

[43:53] Does Disney have an IP problem?

[48:28] Taking a look at the state of Netflix - do they need a merger partner or to buy something?

[51:37] Making the case that Netflix is a risk-adjusted alpha generator

[54:32] Final thoughts

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John Maxfield, Editor of the Maxfield on Banks Newsletter on Substack, has spent nearly two decades studying America's best and worst banks, the history of banking, and interviewing bank leaders. John joins the Yet Another Value Podcast today to answer your burning questions regarding investing banks, his mindset during this "crisis" and how to think about investing in banks moving forward.

For more information and to subscribe to John's new substack, please visit: https://maxfieldonbanks.substack.com/

Show notes:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:43] John Maxfield's background and how he got into investing in banks

[4:52] Overall thoughts investing in banks right now in a post-SIVB, UBS buying Credit Suisse world

[8:43] Blood in the streets in banks vs. other markets[12:45] Why are customers with $10-100M running uninsured deposits in First Republic?

[13:55] Regional banks

[21:13] How should folks be weighing the risks with regard to investing in banks?

[26:54] Catalysts that caused the 1873 crisis; what can we learn from that crisis

[29:06] The "everyone needs to chill" model when thinking about run on the banks

[33:20] Bank metrics - how KPIs investors care about have changed/evolved

[35:25] Franchise risk for banks

[38:48] Does what is happening now have an impact on the community banks?

[47:11] Bank stocks that look interesting to John Maxfield in a Post-SIVB world

[57:47] How do you make $$ as a bank investor buying a bank for 4x book value?

[59:47] Generalist interest in banks: what should folks put more weight on when evaluating various investing opportunities (HINT: how did they perform during the 2008 financial crisis)

[1:04:38] How important is speaking with management from bank stocks?

[1:06:41] Closing thoughts

Today's episode is sponsored by: Stream by Alphasense

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Julia Laulis, Chair of the Board, President & CEO of Cable One, Inc. (NYSE: CABO), joins Yet Another Value Podcast to discuss how the cable industry is positioned right now in 2023, and Cable One's focus moving forward. Cable One will also be at The Markel Corporation's 2023 shareholders meeting in Richmond, VA on May 17, 2023, where Andrew will also be in attendance.

Chapters:
0:00 - Introduction + Episode sponsor: $BYTE
1:44 - Let's talk about the Cable business; why its an exciting and scary time in the space
4:04 - Does fixed wireless pose a risk to Cable One's focus on broadband for small cities, large towns strategy?
6:47 - The fear with fixed wireless
10:13 - Cable One's experience with fixed wireless
12:13 - Data usage
15:16 - What is it that ultimately turns a fixed wireless customer into a parking place for a future cable customer?
17:17 - Reliability of the network
19:07 - MD&O strategy
21:56 - Fiber overbuilding in general
27:49 - Customer ARPU
31:37 - Cable One's pricing
34:44 - Data throughputs
38:14 - Switching to IPTV and how does this improve the economics of the business
42:13 - Julia's thoughts on fiber vs. Docsis 4.0 for Cable One
46:57 - Is Julia starting to the M&A environment picking up?
48:51 - Share buybacks and capital allocation strategy
51:27 - Customer churn and macro perspective on new connects
1:00:16 - Cont'd. on customer low churn

Today's episode is sponsored by: Roundhill IO Digital Infrastructure ETF – BYTE

Investing in the real assets that underpin our digital world has never been easier. We are pleased to bring you this podcast in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol - “B” “Y” “T” “E”. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte - read carefully. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing in BYTE. Distributor Foreside Fund Services, LLC: https://www.roundhillinvestments.com/etf/byte/

Chadd Garcia, Portfolio Manager and Senior Research Analyst at Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, joins the Yet Another Value Podcast for the first time to discuss DigitalBridge Group, Inc. (NYSE: DBRG), and why he finds there could be price dislocation in the global digital infrastructure firm.

Chapters:

0:00 - Introduction + Episode sponsor: $BYTE

2:23 - Overview of DigitalBridge Group, Inc. (NYSE: DBRG)

8:10 - Chadd's thoughts betting on CEO, Marc Ganzi, + background

12:38 - First part of the valuation argument, Chadd's describes the sum of the parts

18:17 - DigitalBridge investment summary so far + second part of the valuation argument (asset pitch), and what the sell-side is missing when they look at the asset value side of the business

26:30 - Thinking through the income statement and cash flow

29:38 - Updated guidance for 2023 and 2025: how does Chadd think about valuation with respect to this information

32:14 - Operating leverage

33:44 - Two acquisitions on the asset management business and their affect on D/E multiple

37:47 - Opportunity cost: Why choose DigitalBridge over alternatives?

40:02 - Addressing pushback on DigitalBridge 45:45 - Outlook on fundraising & acquisition environments

48:47 - Value catalysts for 2023

49:49 - Thinking the the DBRG's scaling potential

50:59 - Does Chadd Garcia think DBRG eventually branches outside digital infrastructure?

52:36 - DBRG's capital allocation strategy

55:45 - Marc Ganzi's payout incentive and how that affects investor sentiment/thesis on DBRG

1:01:04 - Closing thoughts on DBRG 

For more information about Chadd Garcia and Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, please visit: https://www.schwartzinvest.com/investing-with-us/ave-maria-mutual-funds/

Today's episode is sponsored by: Roundhill IO Digital Infrastructure ETF – BYTE

Investing in the real assets that underpin our digital world has never been easier. We are pleased to bring you this podcast in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol - “B” “Y” “T” “E”. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte - read carefully. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing in BYTE. Distributor Foreside Fund Services, LLC: https://www.roundhillinvestments.com/etf/byte/

Chris McIntyre returns to the podcast to discuss Sotera Healthcare (SHC), why he thinks it's such a good business, and why he thinks the stock is still undervalued even after a big run in the wake of putting their legal liabilities (largely) behind them.  

Chapters 


0:00 Intro 
2:15 Sotera Overview 
5:30 What makes Sotera such a good business? 
14:30 Why it's so unlikely a new competitor can enter the space 
19:55 Discussing Sotera's "growth algorithm"  
23:30 Sotera's multiple / valuation 
32:00 Historical legal liabilities overview 
38:45 The "science" behind the legal liabilities 
43:15 SHC's settlement and putting the legal liabilities behind them 
49:00 Why Georgia is not the same risk as Illinois was 
53:35 Sotera's controlling shareholders and their plans for the company 
56:00 M&A and roll up possibilities 
1:00:45 Closing thoughts

Chris DeMuth returns to the podcast for his monthly state of the markets, with updates on TGNA, ATVI, AMC / APE, and MANU.  

Chapters 


0:00 Intro 
2:30 TGNA 
27:00 ATVI / MSFT 
42:30 AMC / APE 
50:00 MANU