KNOL

[calven]

Anyone care to look at KNOL's earnings for me??? What do you make of it?




Nov 8 (Reuters) -

KNOLOGY INC. (KNOL.O: Quote, Profile, Research)

Latest Forecast* No. of Yr ago

analysts qtr Loss (diluted, $/shr) 0.30 -- -- 0.34 Net loss ($ million) 10.5 -- -- 8.0 Total revenue ($ million) 65.3 64.8 5 58.6

*Source: Reuters Estimates

--For the latest quarter, analysts on average expected the company to post a loss of 23 cents a share before exceptional items, according to Reuters Estimates.

--Knology said diluted shares used to compute per-share figures were about 34.7 million in the latest third quarter, compared with about 23.7 million in the year-ago period. (Reporting by Deepti Chaudhary in Bangalore)

© Reuters 2006. All Rights Reserved.






Knology Reports Continued Strong Results for the Third Quarter 2006
Wednesday November 8, 6:07 pm ET

WEST POINT, Ga.--(BUSINESS WIRE)--Knology, Inc. (NASDAQ-GM: KNOL):

Revenue increased to $65.3 million for the third quarter 2006 and to
  $192.1 million YTD, representing growth of 11.3% and 12.4%,
  respectively.

EBITDA, as adjusted, increased to $17.3 million for the third quarter
  2006 and to $49.3 million YTD, representing growth of 37.1% and
  43.3%, respectively.

Free Cash Flow increased to $3.3 million for the third quarter 2006
  and to $4.2 million YTD.

Added 8,391 net connections, including growth in all three service
  offerings consisting of 4,764 data connections, 2,329 voice
  connections and 1,298 video connections.

Knology, Inc. (NASDAQ-GM: KNOL) today reported financial and operating results for the third quarter ended September 30, 2006. Total revenue for the third quarter of 2006 was $65.3 million compared to revenue of $64.1 million for the previous quarter and $58.6 million for the same period one year ago. Knology reported EBITDA, as adjusted, of $17.3 million for the third quarter of 2006, representing an all-time high for the company. EBITDA, as adjusted, was $16.5 million in the previous quarter and $12.6 million in the third quarter of 2005.

Knology reported a net loss attributable to common stockholders for the third quarter of 2006 of $10.5 million or $(0.30) per share, compared with a net loss of $10.2 million, or $(0.42) per share for the previous quarter and $8.2 million, or $(0.34) per share for the third quarter of 2005. The net loss attributable to common stockholders for the third quarter of 2005 included a gain of $8.5 million on the sale of discontinued operations.

Total connections increased 8,391 for the third quarter of 2006 to 458,467 as of quarter end. The company added net connections in all three service offerings during the quarter, including 4,764 data connections, 2,329 voice connections and 1,298 video connections. Average monthly revenue per connection was $47.79 for the third quarter 2006 compared to $47.89 in the previous quarter and to $46.49 in the third quarter of 2005. Average monthly connection churn during the third quarter was 2.8%, unchanged from the prior quarter and the same period one year ago.

"We are pleased with the financial results of the business," said Rodger L. Johnson, President and Chief Executive Officer of Knology, Inc. "We have maintained our focus on business fundamentals and customer service, driving the company to record high revenue and EBITDA performance in the third quarter of 2006."

M. Todd Holt, Chief Financial Officer of Knology, Inc. added, "Our improved capital structure, including the lower cash interest requirements, along with strong operating performance and efficient capital spending, resulted in solid free cash flow for the third quarter of 2006, and positions the company for positive free cash flow trends in future periods."

Third Quarter Key Operating Metrics


                                       Q3          Q3       % Change
                                      2006        2005     vs. Q3 2005
                                   ----------  ----------  -----------
Marketable Homes Passed              755,568     747,776          1.0%

Connections
  Video                              178,708     175,294          1.9%
  Voice
    On-Net                           154,198     142,161          8.5%
    Off-Net                            6,164       6,224        (1.0)%
                                   ----------  ----------  -----------
      Total Voice                    160,362     148,385          8.1%

  Data                               119,397     102,555         16.4%

Total On-Net Connections             452,303     420,010          7.7%
Total Connections (1)                458,467     426,234          7.6%

Residential Connections              408,995     383,294          6.7%
Business Connections                  49,472      42,940         15.2%

Average Monthly Revenue Per
Connection                           $47.84      $46.49
Average Monthly Connection Churn         2.8%        2.8%

For full descriptions of the above metrics, please refer to Non-GAAP Financial and Operating Measures on page 4 of this release.

(1) YTD 2006 Knology has added 25,618 net connections. Knology previously reported 12,754 net connections for the first quarter 2006, which included 1,244 business voice connections that were not active. The adjusted connection gain for the first quarter is 11,510. This adjustment had no impact on reported financial results.

Conference Call and Replay

[ScottishTrader]

Hey Calven,

Good to see you back here, haven't seen you round in a while

Not too sure about their financials, but to me something smells a bit fishy if their revs are only up by 11% over a year ago, while their stock is up over 500%???  And they are still making a 30c/share loss   I suppose 30c/share is better on a $10 stock than for a $2 stock, but I think it looks prime to take a haircut.  Yahoo Finance states analysts estimates at .23/sh loss, which would suggest a significant miss, however, revs are slightly up on the mean $64.8m estimates

Add to that the 6 month rising wedge formation, with clear $11 resistance, a break of $10.25 would look to me like a very nice short setup.  The long term chart is looking quite toppy....  however it is up slightly in the aftermarket, so maybe people like what they see, but it sure don't smell good to me

[calven]

Hey ST,

Thanks for the response. I am short heavily from 10.2565 (average price)

KNOL dropped today, so far so good. Now it needs volume...

This short caught my attention when I looked at the financials - They lose .30 each quarter (10 million dollars), dilute shares outstanding by 46% (10,000,000 share placement) and the stock is up 500% - what a weird situation, couldnt agree with you more!

Chart starting to turn bearish...

[ScottishTrader]

Hey Calven,

I think you got a pretty nice short entry there... I may join you next week, but I (foolishly) overstepped my daytrading limits this week, so no more purchases (or short sells) this week for me!!

By the way, what happened to Chartsetups.com?  I was looking for it the other day and it just transfered me to some guys trading blog - didn't seem to be you or justin though.  Did you decide to cut it loose?

[calven]

Chartsetups.com was doing fine actually but wasnt worth the time or energy of doing it. We had a lot of security issues- the site was hacked a couple times and we didnt want CC purchasing info or other personal info leaking out. That would be a disaster and we would be faced with possible lawsuits if that happened.

Chartsetups.com the URL and the name Chartsetups were both sold to whoever has it now for a nice price  - that person uses it as a redirect link since the domain gets a lot of traffic.  If I decide to pursue this type of site again Ill just create a new one- but for now I post on 3sof and **********.net - much easier and not a lot of fixed time demands.

BTW: I emailed KNOL to www.stocklemon.com for analysis.. I want to see what that guy has to say.

calven

Hey Calven,

I think you got a pretty nice short entry there... I may join you next week, but I (foolishly) overstepped my daytrading limits this week, so no more purchases (or short sells) this week for me!!

By the way, what happened to Chartsetups.com?  I was looking for it the other day and it just transfered me to some guys trading blog - didn't seem to be you or justin though.  Did you decide to cut it loose?