Group 1: Company Analysis - Chevron Corp is highlighted for its strong performance in the energy sector, benefiting from rising oil prices and increased demand for energy [1] - Cogent Communications Holdings Inc is noted for its growth in the telecommunications industry, with a focus on expanding its fiber network to meet increasing data demands [1] - T-Mobile US Inc continues to show robust subscriber growth, driven by competitive pricing and enhanced network capabilities [1] Group 2: Industry Trends - The energy sector is experiencing a rebound, with oil prices climbing significantly, which is positively impacting companies like Chevron [1] - The telecommunications industry is undergoing rapid transformation, with companies like Cogent Communications investing heavily in infrastructure to support higher data usage [1] - The competitive landscape in the telecom sector is intensifying, with T-Mobile US Inc leveraging its market position to attract new customers [1]

Core Thesis - Cogent Communications Holdings, Inc. (CCOI) is viewed as a deep-value investment opportunity despite its high leverage and transitional status in the telecom sector, with significant assets and growth potential being underappreciated [2][5]. Financial Overview - As of September 18th, CCOI's share price was $37.92, with trailing and forward P/E ratios of 94.04 and 5.00k respectively [1]. - The company has $2.3 billion in debt and has experienced net losses, raising concerns about its financial health [2]. Strategic Developments - A key event for Cogent was the acquisition of Sprint's wireline assets from T-Mobile for $1, which included extensive fiber assets and a $700 million subsidy over 54 months, enhancing Cogent's service capabilities [3]. - The acquisition has allowed Cogent to reactivate dormant assets into high-margin optical wavelength services and data centers, expanding its operational footprint significantly [3]. Growth Catalysts - Cogent benefits from a tax shield through 2030, which is expected to enhance cash generation from EBITDA [4]. - The company plans to monetize 24 non-core data centers and 38 million IPv4 addresses, potentially generating $1.8–$2.6 billion, which could eliminate net debt and reduce interest costs [4]. - The wavelength business is projected to reach $500 million in revenue by 2028, with gross margins near 90%, contributing to long-term EBITDA growth towards $500 million and free cash flow of $278 million [4]. Market Positioning - Despite concerns over CEO share sales, these actions are not fundamentally linked to the company's performance, as Cogent focuses on high-margin wavelengths and data center interconnects [5]. - The combination of asset monetization, debt reduction, and growth in optical transport positions Cogent as a compelling investment with a favorable risk/reward profile [5]. Historical Context - The stock price of CCOI has depreciated approximately 48.06% since a previous bullish thesis was published in January 2025, yet the underlying network and operational capabilities remain intact [6].

Group 1 - Madison Small Cap Fund's second-quarter 2025 performance was impacted by the liberation day tariffs, which initially caused a decline in equities and treasuries, followed by a rebound due to a pause in tariff implementation and positive macroeconomic data [1] - The Russell 2000 Index increased by 8.5% for the quarter and is down only 1.79% year-to-date, while the Madison Small Cap Fund (class Y) returned 4.42% in the quarter, underperforming compared to the Russell 2000 and Russell 2500 [1] - The fund highlighted Cogent Communications Holdings, Inc. (NASDAQ:CCOI) as a key stock, which has seen a one-month return of 0.35% but a significant decline of 48.00% over the last 52 weeks, with a market capitalization of $1.852 billion as of September 17, 2025 [2] Group 2 - The underperformance of Madison Small Cap Fund was attributed to stock selection in Information Technology and Consumer Staples, with Cogent Communications Holdings, Inc. being the worst-performing IT stock [3] - Cogent Communications, which carries nearly 25% of the world's internet traffic, recently launched Wavelength Services aimed at providing high-capacity, low-latency networking connections, but the company slightly missed growth expectations for this service, leading to a sharp decline in stock price [3] - The company has been viewed as experiencing early growing pains with its new service, and the fund has taken this opportunity to increase its investment in CCOI, believing the market reaction to be an overreaction [3]

Group 1: Avista Corp. - Avista has a history of raising dividends for 22 consecutive years, with the most recent increase on Feb. 12, raising the quarterly payout from $0.475 to $0.49 per share, resulting in an annual figure of $1.96 per share [3] - The current dividend yield for Avista is 5.39% [3] - As of June 30, Avista's annual revenue was $1.96 billion, and Q2 2025 revenues were reported at $411 million with an EPS of $0.17, both below consensus estimates [4] Group 2: Cogent Communications - Cogent Communications has increased its dividend for 51 consecutive years, with the latest hike on May 8, raising the quarterly payout from $1.01 to $1.015 per share, equating to an annual figure of $4.06 per share [6] - The current dividend yield for Cogent Communications is 11.30% [6] - As of June 30, the company's annual revenue was $1 billion, and Q2 2025 revenues were $266.17 million, which missed the consensus estimate of $246.83 million, while the per-share loss of $1.21 was better than the consensus of $1.08 loss per share [7] Group 3: Mondelez International - Mondelez International is involved in the manufacturing, marketing, and selling of snack food and beverage products globally [8]

Group 1 - The article discusses Cogent Communications Holdings, Inc. (NASDAQ: CCOI) and presents a positive demand outlook due to favorable secular tailwinds and visibility in the market [1] - The author emphasizes the importance of a diversified investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors, highlighting the author's intent to share insights and performance [1]

Group 1 - The article discusses Cogent Communications Holdings, Inc. (NASDAQ: CCOI) and presents a positive demand outlook due to favorable secular tailwinds and visibility in the market [1] - The author emphasizes the importance of dividends as part of the investment thesis for Cogent Communications [1] Group 2 - The author has a diverse investing background, utilizing fundamental, technical, and momentum investing strategies to enhance the investment process [1] - The purpose of writing on Seeking Alpha is to track investment ideas and connect with like-minded investors [1]

Cogent Communications Conference Call Summary Company Overview - **Company**: Cogent Communications Holdings Inc. (NasdaqGS:CCOI) - **Date of Conference**: September 16, 2025 Key Points Industry and Market Outlook - **End Markets**: The company operates in three segments: enterprise, corporate, and net-centric business [3][4] - **Enterprise Business**: - Acquired from T-Mobile, this segment has seen a compounded decline of 10.6% per year over the last three years, which accelerated to nearly 20% post-acquisition due to purging unprofitable products [6] - Currently stabilizing at zero margin with a negative growth rate of 1-2% [6] - Targeting a return to a 20% margin over the next two years [6] - **Corporate and Net-Centric Business**: - Corporate segment grew at over 11% annually from 2005 to 2020, fell to -9% during the pandemic, and has since rebounded to 3-4% growth [7] - The net-centric segment generates 97% of traffic, growing at 8-9% after a pandemic peak of 26% [7] - Combined legacy segments are growing at mid-single digits (~5%) with 100 basis points of margin expansion annually [7] Financial Performance and Investments - **Sprint Acquisition**: - Acquired for $700 million over 54 months, with a net present value of $244 million in payments due from T-Mobile [8] - The acquisition included 19,000 route miles of intercity fiber and 1,200 route miles of metropolitan fiber [9] - **Data Center Expansion**: - Converted 125 sites into data centers, expanding from 55 to 180 facilities, totaling approximately 2 million square feet and 212 megawatts of power [11] - 24 facilities earmarked for divestiture, with ongoing negotiations for sale or lease [18] Growth Strategy and Market Share - **Wavelength Services**: - Targeting a 25% market share in a $2 billion addressable market, with a current revenue run rate of $36 million annually [10][14] - Competing against Lumen and Zayo, with a focus on intercity segments [14] - Competitive advantages include a larger footprint, faster provisioning, unique physical routes, and lower pricing [15][16] Capital Allocation and Future Outlook - **Capital Expenditure**: - Anticipated capital spending of $100 million annually, with $40 million in principal payments on capital leases [21] - Plans to use proceeds from divestitures for stock buybacks, dividends, or reducing leverage [19][20] Challenges and Market Conditions - **Corporate Business Growth**: - The corporate segment has seen a significant increase in vacancy rates from 6% to over 18% [22] - Current growth rate is stagnant at 3-4%, with a slow recovery from pandemic impacts [23] Additional Insights - **Cost Reduction**: - Ongoing efforts to reduce $20 million in annual expenses from the acquired Sprint business, expected to complete by the end of 2026 [21] - **Market Position**: - Cogent's credibility as the world's largest transfer provider supports its competitive positioning in the market [16] This summary encapsulates the key insights from the Cogent Communications conference call, highlighting the company's current performance, strategic initiatives, and market challenges.

Group 1 - The conference features a presentation by Dave Schaeffer, founder and CEO of Cogent, highlighting his long-standing leadership since the company's inception in 1999 [1] - The event is hosted by Goldman Sachs, specifically by a research analyst covering U.S. telecom, indicating a focus on the telecommunications sector [1] - The presentation is scheduled for approximately 35 minutes, including a Q&A session, suggesting an interactive format for audience engagement [1]

Cogent Communications Conference Summary Company Overview - **Company**: Cogent Communications Holdings Inc. (NasdaqGS: CCOI) - **Industry**: Telecommunications Key Points and Arguments Market Position and Strategy - Cogent has differentiated itself in a challenging telecom sector by focusing on a limited number of products where it has a structural advantage, with nearly 90% of revenue coming from Internet-based services [3][4] - The company has a significant network reach, operating in 57 countries with approximately 1,870 carrier-neutral data centers and over a billion square feet of multi-tenant office buildings [4] Business Segments - **Internet and VPN Services**: This segment will continue to grow and capture market share [3] - **Enterprise Services**: Acquired from T-Mobile, this segment was previously declining at 10.6% annually but has been streamlined to break even, with expectations to reach a 20% positive EBITDA margin in the coming years [4][5] - **Wavelength Services**: The most promising segment, with a goal to grow from a $36 million run rate to $500 million by 2028, targeting a 25% market share in a $2 billion addressable market [9][10] Wavelength Services Growth - The company has repurposed Sprint's physical assets to deliver wavelength services, enabling 938 sites to receive wavelengths within 30 days [6][8] - The demand for wavelengths is driven by various use cases, including AI training data centers, which are rapidly growing [7][9] Competitive Advantages - Cogent's structural advantages include a unique network architecture, faster provisioning, and the ability to price aggressively due to the low acquisition cost of the Sprint assets [8][9] - The company aims to leverage existing relationships with customers who already use its transit services to expand into the wavelength market [12] Financial Outlook - Cogent expects to grow total top-line revenue by 6% to 8% annually, with a margin expansion of 200 basis points per year [30] - The company has a declining capital intensity, projected to reach a $100 million annual run rate, allowing for increased free cash flow [31][32] Asset Monetization - Cogent is considering selling non-core assets, including converted data centers and IPv4 address inventory, to strengthen its balance sheet [26][28][29] - The company has invested about $100 million in converting former Sprint sites into data centers, with a potential market value of $10 million per megawatt [26][27] Capital Allocation and Shareholder Returns - The company has consistently grown its dividend for 52 consecutive quarters and has repurchased nearly 23% of its outstanding shares [35] - Future capital allocation will focus on maintaining a balance between dividends, buybacks, and operational growth, with a disciplined approach to M&A [34][35] Additional Important Insights - The addressable market for wavelengths is growing at an estimated 5% to 10% annually, driven by increased demand from AI training and data center interconnectivity [19][22] - The company has a unique competitive position due to the spatial separation of its fiber routes, enhancing resiliency and diversity compared to competitors [25] This summary encapsulates the key insights from the Cogent Communications conference, highlighting the company's strategic focus, market opportunities, and financial outlook.

Group 1 - The company discussed the performance of its wavelength business, noting that installations in Q2 fell below market expectations [2] - The backlog for installations remains substantial, indicating potential for future growth despite current delivery challenges [2] - Delays in customer acceptance of deliveries were attributed to customers' adjusted expectations regarding delivery timelines [2]