Why Boston Omaha Fell Today

Core Viewpoint - Boston Omaha reported third-quarter earnings that fell short of analyst expectations, leading to a decline in stock price, but the stock is considered undervalued and may present a buying opportunity [1][5]. Financial Performance - Boston Omaha reported revenue of $27.7 million for the third quarter, representing a year-over-year increase of 12.8$27.1 million [3]. - The company experienced a net loss per share of $0.05, which was worse than the estimated loss of$0.01 per share [3]. Business Operations - Boston Omaha operates in various sectors including billboard advertising, fiber broadband, and insurance, and was previously co-run by Warren Buffett's great-nephew, Alex Rozek, who has since stepped down [2]. - The company has significant noncash depreciation charges in its billboard and broadband businesses, which obscure its underlying cash generation [3]. Investment Insights - The stock is currently trading almost 70% below its all-time highs and is valued at less than its book value, indicating potential for investment [5]. - Boston Omaha's stake in Sky Harbour is recorded at its initial investment value, while its market value is actually $64.5 million higher, suggesting that the book value may be understated and could increase by approximately 15% [6]. - The diverse portfolio of stable businesses positions Boston Omaha as a potential buy on the dip [6].