Cablevison: The Stock Could Rise 6x-7x In 5 Years, Fund Manager Says (CVC, rated BUY)
Cablevision (CVC) shares could be worth a lot more than their current price. A lot more. This according to Gifford Combs, managing director and portfolio manager, Dalton Investments, who is interviewed in this weeks issue of Barron’s . Combs says that “the modus operandi of the Dolan family seems to be: how to steal the company at as low a price as possible.” The Dolans have tried several times to take their company private; at the moment the Dolans have an offer on the table to take the company private at $36.26 a share. Combs goes on to say that if they were to simply continue to run the business and lever the company over time…and use that leverage to buy back stock and also sell off some surplus assets here and there, the stock price in five years could be six or seven times what it is today, or $250 to $300 a share.” On Friday, Cablevision gained 34 cents, to $33.