Charter Communications (NASDAQ:CHTR)

On January 26, 2012 we removed CHTR from the GeoSpeicial List @ 59.55

Added to the GeoSpecial list on March 15, 2011 @$35.45.  Also see intial our research note on March 10, 2012. 

Peak performance: Reached a high of  $61.15 on April 29, 2011 for a maximum potential return of 72.5%.

Catalyst: Exited Chapter 11; Company reduced debt by around $8 billion; Company reduced expense by over $800 million; Uplisting to a major exchange was imminent.

Current road block: At its current price CHTR is trading at forward P/E of 34.8 on 2012 EPS estimates of $1.67 .  We are still considering retaining some exposure to CHTR. Adjusted EBTDA is tracking at about $24.22. Historically, companies that operate in CHTR's industry have traded as high as 6 times EBITDA. This would translate into a potential price target of $145.

Current Price: $58.17

Today, GeoSpecial Charter Communications announced the that it:  "received the required votes from lenders to amend its existing $8.177 billion senior secured credit facilities to, among other things, allow for the creation of a new revolving facility, the extension of maturities of a portion of the facilities and the amendment of certain other terms and conditions. As a result, CCO expects to extend approximately $3 billion of existing term loan maturities to September 2016, a two-and a half year maturity extension from the existing term loan maturities."

We are hoping that this will alleviate the uncertainty surrounding this issue and reduce the risk premium embedded in CCMM shares.

Source: PR Newswire (March 17, 2010)