Opinions The Panic-Proof Portfolio (Stockchase Research)
Charter CommunicationsCHTRPAST TOP PICKNov 06, 2025
Stock price when the opinion was issued
As of Jun 02, 2026. Market Open.
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A story like Rogers. Largest cable company in US. Buying one of its competitors. Stock's fallen, but profits have gone up. Almost finished its capital cycle. Non-cancellable contract with VZ to provide wireless cellular service to customers, and that's growing quickly. People still use cable, cellular, and VOD. Good company on sale.
During Covid, US passed Affordable Care Act -- everyone was entitled to a cable line, deemed essential to work from home. Once Covid went away, so did the subsidies. So subscribers fell, and that freaked people out. Rate of decline has flatlined, so population growth should move the needle once again. Trades at 4.5x PE. FCF yield now is ~30%, which means that if you bought right now you'd make 30% of your money every year. Bought back half of its stock in last 3 years, going private slowly. In 2029, will be 70% FCF yield. No dividend.
John O'Connell, CFA
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Premium contentWe reiterate CHTR, operating under the Spectrum brand, as a TOP PICK. The broadband, video, and voice services offered are being tinkered with to increase its competitiveness and grow under developed rural markets. It trades at 7x earnings, 2.2x book and supports a robust ROE of 36%. Cash reserves are steady, despite debt being retired and shares bought back. We continue to recommend a stop at $216, looking to achieve $339 -- upside over 26%. Yield 0%
(Analysts’ price target is $407.89)Premium contentCHTR, operating the Spectrum brand name, has had its shares given a hair cut recently due to the bearish news on increased competition in providing internet home services. The company vows it plans to fight back offering customers incentives, including bundling discounts and free services, while standing behind its faster technology offerings. It now trades at 8x earnings, 2.4x book and supports a 36% ROE. We recommend setting a stop-loss at $216, looking to achieve $361 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $425.74)Its poor performance has put him off investing in telcos. Lots of competition for internet, wireless, and mobile. Using a lot of free cashflow to buy back stock at much higher prices, so balance sheet not as good anymore. Interest rates have gone up, and lots of cashflow being used to service this cost.
He fell in love quickly, but speculative here. Arguably cheap valuation but, until you see a turn in the business, hard to say where the stock is going.
He got out just below $300. Surprised by management's Q1 commentary, didn't expect capex buildout extension and cost escalation. Free cashflow would not arrive until 2028, and this skewed his valuation. Even though it's fallen, fresh eyes would not make him re-enter, risk/reward just not there.
Premium contentVery well run company serving millions of customers across ~40 US states. In sweet spot of mobile phone demands. Excellent capital allocation skills with low debt levels. Capital expenditures expected to drop which will increase free cash flow. When interest rates fall, will also be good for profits in the business (less lending costs).
Premium contentCHTR is a broadband and cable operator serving 32 million customers in the US in 41 states under the Spectrum brand and is a favorite of Warren Buffet. It trads at 12x earnings and supports a 40% ROE. Cash reserves are growing while debt is aggressively retired and shares bought back. We recommend setting a stop-loss at $290, looking to achieve $466 -- upside potential of 26%. Yield 0%
(Analysts’ price target is $466.59)
Barry Schwartz
Our PAST TOP PICK with CHTR has triggered its stop at $216. To remain disciplined, we recommend covering the position at this time.