Recurve Capital's Aaron Chan on Cogent $CCOI

In this episode of Yet Another Value Podcast, host Andrew Walker returns with Aaron Chan from Recurve Capital to explore Cogent Communications (CCOI). Aaron breaks down the legacy internet business, the Sprint wireline acquisition, and the complex financial transformation underway. The conversation highlights CEO Dave Schaeffer’s strategic vision, market dynamics in enterprise telecom, and the network’s long-term potential. They analyze network architecture, discuss operational efficiency, and evaluate capital allocation under heavy leverage. The episode closes with thoughts on competitive threats, structural advantages, and what the future may hold post-Dave.

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[00:00:00] Podcast and guest introduction

[00:02:22] Aaron introduces Cogent business overview

[00:06:51] Legacy network setup and strategy

[00:10:19] Competition and service differentiation

[00:14:36] Sprint network acquisition background

[00:20:35] Challenges with Sprint integration

[00:27:59] Wave business compared to Lumen

[00:35:40] Missed expectations and market reaction

[00:40:17] Dave’s control and RE leverage

[00:48:49] Dividend vs. buyback strategy

[00:53:41] Dave’s succession and exit plan

[00:59:00] Traffic deflation and usage trends

[01:03:17] Pricing strategy and competitive risks

[01:07:54] Cogent's share strategy explained

[01:10:12] Competitive positioning against Lumen

[01:13:29] Core infrastructure value and demand

[01:16:44] Future growth expectations and risks

[01:20:18] Final thoughts on investment case

[01:25:30] Closing remarks and sign-off

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