-Otelco presents itself as an asymmetrical risk/reward with a skew towards the upside.
-The company recently refinanced their looming debt obligation. The refinancing will buy the company time to continue deleveraging their balance sheet.
-Further debt reductions will allow the company to trade at a higher valuation with lower risks.
-Otelco is still undervalued on an absolute and relative basis. However, due to the refinancing, the upside is now higher than before.
-High barriers to entry, stable FCF and an attractive business model make for a great takeover target.