Shenandoah Telecommunications (NASDAQ:SHEN)

CAPS Rating: 2 out of 5

A diversified telecommunications holding company that, through its operating subsidiaries, provides both regulated and unregulated telecommunications services to end-user customers and other communications providers in the southeastern United States.

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Player Avatar InveniamViam (< 20) Submitted: 10/24/2013 2:59:28 PM : Outperform Start Price: $14.49 SHEN Score: +102.82

Very conservatively run company that steadily grows both the top and bottom lines. Nothing sexy here, just very solid results. They will have a very easy time supporting their dividend moving forward, which is really nothing spectacular, about $.36 per share. Gross margins are a beefy ~60% with operating margins running closer to 15%. If they can maintain this sort of return and continue to slowly grow, this is going to a great pick for a long time to come. I am estimating their 2014 earnings at 1.50 a share; at 20 times forward P/E thI would estimate their value at $30 a share.

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