Liberty Global Inc. ALBTYA

Liberty Global provides diversified exposure to international cable assets. Many of the systems it owns enjoy penetration rates that are among the best in the world. Other less-penetrated markets offer growth potential.

Over the past few years, the firm has sold assets in Sweden, France, Norway, Brazil, Peru, Slovenia, and most recently Japan; increased its stakes in Belgium and Australia; and acquired Swiss, Irish, Romanian, and German operations. It also made some smaller acquisitions in existing markets. Management's deep experience, coupled with its desire to wheel and deal, should add value for shareholders over time.

Liberty bought back $1.8 billion worth of stock in 2006, $1.9 billion in 2007, and a further $2.2 billion in 2008. Despite concerns about its debt load, the firm bought an additional $205 million of its stock during the first half of 2009.

The firm continues to roll out higher speeds for Internet access with offerings of up to 120 Mb/s in the Netherlands, and 100 Mb/s in at least some markets in most of the rest of Europe. Read more 

Liberty has $17.7 billion in net debt. Its UGC division previously went bankrupt after taking on too much debt. With the current credit environment, additional debt will have high interest payments.

This is John Malone's company, and his interests may not be aligned with minority shareholders'.

Although some of the firm's networks are state-of-the-art, many need significant upgrading to offer the latest digital cable and Internet access services, which will keep capital expenditures high into the foreseeable future.

Several of Liberty's assets are located in emerging markets and are subject to volatile economics, currencies, and politics. Read more