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I've been running my ruler over RCN again, thinking of adding to a small holding - prompted by the Tweedy Browne filing of about 5% ownership.

Obviously at book value for investments and the preferreds, the common doesn't look prtty; a little better if you factor the Vulcan $1.6b of pref's as equity (treating the Vulcan as having a convert of around $50 - to allow for the 7% stock dividend which the common won't get - so about $150M shares out) I get a notional book of about $5 a share.
Obviously as the Vulcan preferreds have a par liquidation preference (ie at $1.6b + divs) this won't play out in liquidation.

What I'm puzzling over at the moment is the asset side of the balance sheet. For some reason I have the figure of cable subscribers going at $1,000 ea. in transactions. At 1.2m subscribers (? I'm sure there's not just tv in here I know) that'd give assets of a billion or so meaning that they've paid too much - yet I thought this way was going to be cheaper - even factoring in a doubling in connections, and the 4!b in 'cash' this doesn't get us to the $4b in assets.

My key question here I suppose is
Is $1,000 per subscriber a reasonable sale value for a cable business?

peter xyz
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