Should You Hold Cable One (CABO)?
Headwaters Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund’s portfolio gained 1.6% net compared to a -3.4% decline for the Russell Mid Cap index. The portfolio’s outperformance in the third quarter was attributed to stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Headwaters Capital discussed stocks like Cable One, Inc. (NYSE:CABO) in the Q3 2022 investor letter. Based in Phoenix, Arizona, Cable One, Inc. (NYSE:CABO) is a US-based video, data, and voice services provider. On October 25, 2022, Cable One, Inc. (NYSE:CABO) stock closed at $800.99 per share. One-month return of Cable One, Inc. (NYSE:CABO) was -11.45% and its shares lost 54.66% of their value over the last 52 weeks. Cable One, Inc. (NYSE:CABO) has a market capitalization of $4.709 billion.
Headwaters Capital made the following comment about Cable One, Inc. (NYSE:CABO) in its Q3 2022 investor letter:
"Top Detractor: Cable One, Inc. (NYSE:CABO) -34%. Cable One’s share price declined -34% during the quarter as investor fear around competition in the broadband market drove significant multiple compression for the stock. Fundamentals for CABO continue to be healthy, albeit with a deceleration in broadband net adds. While this slowing pace of customer additions was expected following the COVID pullforward of new subscribers, investors are grappling with the ability for CABO and the broadband industry as a whole to generate subscriber growth going forward given new competition from wireless 5G, government subsidized broadband investments and even new players such as Starlink. I believe that CABO remains more insulated than most players given its largely rural footprint leaves it less exposed to many of the industry competitive threats."
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Cable One, Inc. (NYSE:CABO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Cable One, Inc. (NYSE:CABO) at the end of the second quarter which was 20 in the previous quarter.
We discussed Cable One, Inc. (NYSE:CABO) in another article and shared the list stocks sold by investing legend Mario Gabelli in Q1 2022. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
