DISH - Valens Credit Report - 2021 01 26
Credit markets are grossly overstating credit risk, with a CDS of 460bps and a bond YTW of 5.590% relative to an Intrinsic CDS of 123bps and an Intrinsic YTW of 1.730%. Furthermore, Moody's is overstating DISH's fundamental credit risk, with its B1 rating four notches lower than Valens' XO (Baa3) ratingIncentives Dictate Behavior™ analysis highlights DISH's compensation framework should drive management to improve all three value drivers, which should lead to Uniform ROA expansion, and greater cash flows available for servicing obligations. Furthermore, management members have no change-in-control compensation, indicating that they are not incentivized to accept a buyout or pursue a sale of the company, reducing event risk
Earnings Call Forensics™ of the firm's Q3 2020 earnings call (11/6) highlights management generated an excitement marker when talking about the progress of their retail wireless business expansion. In addition, they are confident T-Mobile is giving them visibility into the decommissioning of underperforming Sprint sites
DISH Network is a holding company. Through its subsidiaries, the company operates two business segments: Pay-TV and Wireless. The company provides pay-TV services under: the DISH? brand, which consists of, among other things, Federal Communications Commission licenses authorizing the company to use direct broadcast satellite and Fixed Satellite Service spectrum, the company's owned and leased satellites, and certain other assets utilized in the company's operations; and the Sling? brand, which consists of, among other things, live-linear streaming over-the-top Internet-based domestic, international and Latino video programming services. In addition, the company invests to acquire certain wireless spectrum licenses and related assets.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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