Normalized Earnings I think we can finally start putting it all together and see where we come out. Here are my estimates, in broad strokes, for the next 2.5 years: The red numbers are hard inputs by me; everything else is either a formula or historical fact. The final figures differ very slightly from some … Read more →

Like most mobile markets, Australia’s is an oligopoly: Telstra sells its phones exclusively through stores that it operates itself. Historically, the other carriers have sold their phones partially through resellers, with Allphones being Australia’s largest such reseller. In 2013, however, Optus (which owns both the Optus and Virgin Mobile brands) elected to pull its phones … Read more →

The Canadian cell phone market is an oligopoly, with Rogers (34% market share), Bell (28.5% market share), and Telus (28.5%) together controlling 91% of the Canadian wireless market. In Canada the average monthly cell/data bill (“ARPU”) is around $58, which is amongst the highest in the world. Canadian regulators are unhappy about this situation. Recently … Read more →

The table below provides a high-level overview of Glentel’s four segments. The figures for the Canadian segment show store-level economics prior to the changed Canadian wireless laws and also prior to the opening of the 127 Target stores.  This table shows the basic financials for these segments. The final metric, EBITDA per store, is the … Read more →

It seems germane to start with an overview of how Glentel got to where it is today. For a brief moment, Glentel was actually a favorite among micro-cap value managers. Guy Gottfried, portfolio manager of Rational Investors and previously an analyst at value giant Fairholme, pitched the company at the Value Investing Congress in 2013, … Read more →

Monte Sol and its affiliates own Glentel shares. In the future Monte Sol and its affiliates may reduce or increase their investments in Glentel depending on changes in share price or business performance. Monte Sol and its affiliates have no obligation to disclose any future transactions in Glentel shares. The analysis presented here is the … Read more →