Cove Street Capital requires a modern browser to look and function properly. Internet Explorer stopped receiving updates in January 2020. Using it may cause display issues on our website, and put your own online security at risk. We highly recommend switching to a secure modern web browser such as Chrome, Edge, Firefox, or Safari.

The Value of an Excellent Perception of the Obvious….or Not…of Sellside Analysis by Charlie Ergen

This exchange is lifted from the recent DISH earnings call. DISH is attempting an “interesting/controversial/expensive/risky?’ build of a software-defined 5G network. They don’t promote, they don’t do conferences, and they are in the middle of it. Translation – it’s hard to “analyze.” Which never stops anyone from trying. Craig Moffett is the analyst here, part of the eponymous Moffett-Nathanson research firm known for its work in what is broadly “media.”  Charlie Ergen is a world-class poker player and Founder/CEO of Dish Networks.

In answer to a question about “why did you do a convertible bond and not straight debt in December, Ergen responds:
“From a financing point of view, the converged security, we just felt like putting capital on the balance sheet to get us to 2023, where I think, there’s always a chance more than 0, Craig, that we’re out of business. We don’t know what the heck we’re doing, and we fail. But I think that the rational bet is that we know what we’re doing and that we have a team and partners to help us. And we’re going to get there. And then obviously, the world looks at this a little bit differently. And you’re probably one of our biggest skeptics and it’s our job to – your stuff is well taken. I read your stuff. I think you’re a great writer, and I think you make great points.
But not one of your points, not one ever, has been something that we haven’t thought about here. And that we don’t at least believe we have a strategic solution to it. And therefore, I think that our job is to go out and produce this, is to go out and execute and build this network. And then obviously, internally, we talk about — we just prove our skeptics wrong. And so we don’t really talk – so we don’t do a bunch – we don’t spend a lot of time talking external about what we’re doing, we just stay focused on what we’re doing. And good teams and good companies that do things, they focus. And we focus probably to our detriment. We don’t explain what we’re doing to everybody every day. But we’re going to show you. And that’s why I think John’s question, I think, earlier, when we can see something, the third quarter, I think, will be important.”
We bought the stock in our non-smallcap accounts around 30.
Jeffrey Bronchick, CFA
CoveStreetCapital.com
Share on facebook
Share on twitter
Share on linkedin
Share on email

Important Notice

You are now leaving Cove Street Capital’s website and entering Cove Street’s Mutual Fund website.