Disclaimer: This content is for informational purposes only, not investment advice. I may own equities mentioned in this article. Investing involves risk, so always do your own research before buying or selling any securities.
I finally got around to reading the book Active Value Investing by Vitaliy Katsenelson the other day. The man is one of the greats, and I have learned more about pinning down a company's intrinsic value from him than from Warren Buffett himself.
Okinawa Cellular Telephone popped up on my quantitative screener last week with metrics that immediately reminded me of his brilliant thesis on Charter Communications (CHTR). I listened to an interview where he raved about Charter because it operated as a localized broadband monopoly that generated absurd, predictable cash flow while relentlessly cannibalizing its own share count to force per-share value higher.
Okinawa Cellular runs this exact same localized monopoly playbook in Japan, but they pair it with a pristine, unlevered balance sheet instead of the terrifying debt loads typically found in American cable companies. I had to dig deep into the valuation math to see if he, and I, would actually love this stock today.
