Much of what we wrote around WOW clearly applies to COL. Last month we described COL as a “high-risk” defensive play, with the courts set to determine the short-term pain from its price manipulation, the final report for the inquiry is due to be provided to the Government by the 28th of February 2025. Similar to WOW, its trading slightly cheap relative to the valuation it normally holds as markets hate uncertainty, and that’s precisely what we have today. In MM’s view, COL is not compelling into Christmas with the outcome likely to be 4-months away before appeals etc, a field day for lawyers!
- We prefer COL over WOW in line with their recent trading updates, but even after recent rerating the risk/reward isn’t compelling.
MM likes COL in the $17-$17.50 region
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