BWS Financial Downgrades Knology (KNOL) to Hold; Moving to Sidelines
More News related to KNOL
- Knology (KNOL) Acquires Assets of Private Cable Co.
- Knology Announces Acquisition of the Assets of Private Cable Co., LLC for $7.5 Million Cash
- BWS Financial Downgrades Knology (KNOL) to Hold; Moving to Sidelines
- Knology (KNOL) Posts Q3 EPS of $0.05 Ex-Items, Shy by 2c
- Knology Reports Results for the Third Quarter and Announces Definitive Agreement to Acquire the Assets of Private Cable Co., LLC for $7.5 Million Cash
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BWS Financial downgrades Knology (Nasdaq: KNOL) to Hold.
BWS analyst says, "KNOL reported third quarter results and announced a small acquisition, which is expected to close before the end of the year. KNOL is buying Private Cable for $7.5 million to gain access to Athens and Decatur, Alabama...KNOL is having success with the fill-in project. KNOL has a 63% penetration rate in these areas with KNOL being the third service provider...Management is full pressed in not wanting to pay down debt anytime soon. Such a reason would require KNOL to have a steady M&A stream to keep cash flow growing or the return on assets could start to decline...The third quarter results were not as great as we would have liked them to be. This led us to reassess our model and make some changes. The EBITDA margin should show positive traction through the end of 2010...KNOL shares have advanced to a price point where it could be difficult to make more headway until revenue and EBITDA figures show some acceleration. The Private Cable deal is not going to provide this thrust...We are inclined to downgrade KNOL shares to a Hold and recommend moving to the sidelines. The best scenario that we believe could transpire for KNOL’s stock is flat performance near the $10 level."
To see more analyst ratings on KNOL Click Here.
Knology, Inc., through its subsidiaries, owns and operates an interactive broadband network in the southeastern and midwestern United States.
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