WOW Sale Boosts Knology Shares.(WideOpenWest L.L.C. acquired by Avista Capital Partners)(Brief article)

Multichannel News, April, 2006

By Staff Miller, Tabak & Co. media analyst David Joyce initiated coverage of Knology Inc. last week with a 'buy' rating and an $8 price target, citing controlled debt and growing valuations in the cable overbuilder sector as a plus for the stock. Joyce wrote that Knology completed a balance-sheet restructuring in 2002 and went public in 2003, 'so its debt service is manageable.

With capex weighted toward variable purchases, the company should turn the corner and be free cash flow break-even for the year.' On the downside, Joyce wrote that the nature of the overbuilder business pits Knology against incumbent cable operators and satellite service providers - and soon the regional Bell telephone companies, which are rolling out video to complement...

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