Go Long Shares Of WideOpenWest Around The Quiet Period Expiration

Overview

The quiet period will expire for cable operator, WideOpenWest, Inc. (Pending:WOW), on June 19, 2017. Beginning on June 20, 2017, the company’s underwriters will be able to release reports and conduct analyses for the first time since the company’s IPO.

The underwriters for the IPO are UBS Investment Bank, Credit Suisse, RBC Capital Markets, SunTrust Robinson Humphrey, Evercore ISI, Macquarie Capital, LionTree and Raymond James.

Our firm has studies price movement around company IPOs and have found a boost in share price in the days surrounding the event, particularly for companies which are backed by a strong team of underwriters (see study results here).

We evaluated WOW in depth ahead of its IPO and at the time recommended investors avoid the IPO due to high debt and stiff competition. After using net proceeds to pay down debt and opening significantly below its market range, WOW now presents a solid buying opportunity for event-driven investors. We expect a stock boost of between 2-3% in a short window of time around the June 19 expiration date.

Business overview

WideOpenWest is the sixth-largest cable provider in the U.S. Based in Denver, Colorado, it offers high-speed data, cable television, VOIP and business services to customers in Florida, Alabama, Tennessee, South Carolina, Georgia, Indiana, Illinois, Maryland, Michigan and Ohio. As of March 31, WOW had 708,100 subscribers as of March 31, 2017.

Management

Steven Cochran is the chief executive officer and a director of WideOpenWest, Previously, he served as the company’s chief financial officer (from Oct. 2012 until July 2012), the chief operating officer (from 2008 to April 2014) and as the president (from 2010 to April 2014). Before joining the company, Cochran served as the CFO and senior vice president at Millenium Digital Media. He holds a degree in economics and a Master of Accounting Science from the University of Illinois Urbana-Champaign.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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