Cigar butt? VSNT (Versant)

u/EricMichaelis · Reddit — r/ValueInvesting · February 11, 2026 at 22:05 · ⬆ 1 pts  | View on Reddit ↗
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Original Reddit post

Author presents Versant (VSNT) as a cigar-butt spinoff with a low P/E, strong FCF, and a potential $1B buyback catalyst.

VSNT — LONG The author views Versant (VSNT) as a cigar-butt opportunity: a Comcast spinoff with a P/E of 3-4, $1-1.2B annual free cash flow, and leverage under 1.25x, being sold off due to index exclusion. The catalyst is management's stated plan for up to $1B in share repurchases, which could drive returns if executed aggressively. The main risk is that the industry may decline over a decade or two, but the author believes the stock is priced as if the company will die in three years.

This stock is a spinoff that has a P/E ratio of around 3 or 4; since it can't be in major indexes like its parent company Comcast, it is being sold like crazy, but it generates a free cash flow of $1 billion to $1.2 billion every year.

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u/EricMichaelis Reddit r/ValueInvesting
VSNT cigar butt with buyback catalyst
The author views Versant (VSNT) as a cigar-butt opportunity: a Comcast spinoff with a P/E of 3-4, $1-1.2B annual free cash flow, and leverage under 1.25x, being sold off due to index exclusion. The catalyst is management's stated plan for up to $1B in share repurchases, which could drive returns if executed aggressively. The main risk is that the industry may decline over a decade or two, but the author believes the stock is priced as if the company will die in three years.
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This Reddit post, published February 11, 2026, features u/EricMichaelis discussing VSNT. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/EricMichaelis  · Tickers: VSNT