The New Telephone and Data Systems
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Kerrisdale Capital Management3.91K FollowersFollow5ShareSavePlay(52min)CommentsSummaryTelecom and Data Systems is now a focused fiber and tower platform post-US Cellular sale, with a clean balance sheet and disciplined capital allocation.TDS Telecom is accelerating fiber builds in underserved Tier-2/3 markets and leveraging FCC E-ACAM subsidies to convert rural copper to high-penetration fiber.Array Digital is transforming into a standalone tower business, with tenancy and margin expansion, and $1.8B in special dividends imminent from spectrum monetization.At current prices, TDS trades at a distressed valuation despite a clear fiber growth trajectory, with a fair value estimate of $68 per share—70% upside. FlashMovie/iStock via Getty Images We are long Telephone and Data Systems, Inc. (TDS), a $4.8 billion telecom holding company that spent most of the last decade stuck in a narrative so convoluted that investors largely stopped trying to unravelThis article was written byKerrisdale Capital Management3.91K FollowersFollowKerrisdale Capital is a private investment manager that focuses on value and special situations investments. We manage investment partnerships and separately managed accounts.Analyst’s Disclosure:I/we have a beneficial long position in the shares of TDS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Please read our disclaimer at https://www.kerrisdalecap.com/legal-disclaimer-2/Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.