United Internet Is Likely To Shrink Its NAV Discount Soon

Early Retiree 7.21K Followers Follow Summary United Internet offers potential 50–100% upside in 1–2 years as it nears full 1&1 ownership. United Internet trades at a deep NAV discount, but a likely 1&1 squeeze-out and merger should unlock value and drive a rerating toward €45/share. 1&1’s transition to a full telco, cost reductions, network densification, and tax efficiencies underpin predictable earnings and FCF growth. Even without a squeeze-out, United Internet could benefit from buybacks, takeover rumors, and downside protection via 1&1’s fallback MVNO model and Vodafone roaming. Will United Internet shareholders fully enjoy 1&1's juicy returns? ValentynVolkov/iStock via Getty Images A complicated story is getting simpler I presented the German communication services provider United Internet ( UDIRF ) ( UDIRY ) right before last year’s Liberation Day sell-off as a catalyst-rich story with many roads to success . Fast forward 18 This article was written by Early Retiree 7.21K Followers Follow Having always been a learning machine, I speak five languages, have worked as a sales agent, project manager, translator, computer consultant, software engineer, built a house with my own hands, published books and essays on literature, philosophy and art, have written for magazines of various kinds in different countries. After retiring early in 2004, little by little, I have become a fund manager for some friends and myself, following the principles of value investing laid out by Benjamin Graham, Phil Fisher, Charlie Munger and Warren Buffett. In my article “The Portfolio For Early Retirees” I presented a simple and practical way to structure an investment portfolio for early retirees. In 2015 I won the Seeking Alpha Contrarian Contest and was among the winners of several other competitions in later years. I have also been a regular contributor to Seeking Alpha Pro right from the start.I strive to gather above-average knowledge about my stock picks. As this takes many hours, despite managing my portfolio full-time, you should not expect me to throw out new ideas each and every week. My Investment Strategy Statement can be found here.Legal Disclaimer: My contributions to Seeking Alpha, or elsewhere on the web, are to be construed as personal opinion only and do NOT constitute investment advice. An investor should always conduct personal due diligence before initiating a position. Provided articles and comments should NEVER be construed as official business recommendations. In efforts to keep full transparency, related positions will be disclosed at the end of each article to the maximum extent practicable. I am not registered as an investment adviser, nor do I have any plans to pursue this path. No statements should be construed as anything but opinion, and the liability of all investment decisions reside with the individual. Although I do my utmost to procure high quality information, investors should always do their own due diligence and fact check all research prior to making any investment decisions. Any direct engagements with readers should always be viewed as hypothetical examples or simple exchanges of opinion as nothing is ever classified as “advice” in any sense of the word. Analyst’s Disclosure: I/we have a beneficial long position in the shares of UDIRF 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 (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. 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.