searching for a short idea?
Hedgeye Communications analyst Andrew Freedman recently released his newest short idea, Altice USA (ATUS). He is calling for 30 to 60% downside for the cable provider.
In addition to missing their Q3 numbers, guidance and what Freedman calls a “churn problem,” he includes additional color fortifying his short call in the clip above.
Freedman highlights a number of issues adversely affecting the company including:
- A recent spike in negative Better Business Bureau reviews
- A rise in reported employee dissatisfaction, and
- The outage-plagued rollout of Altice Mobile in September
Nope, not good.
“We’ve seen two to three times increase in the number of complaints filed and is reaching the number of Comcast, which is remarkable given that Comcast is about four to five times the size of Altice,” Freedman explains.
“It’s a disaster to launch any type of new product and have this type of negative reaction because word spreads like wildfire. I think it’s a big risk to the long term MVNO strategy in general.”