The price of CCOI is predicted to go up 16.33%, based on the high correlation periods with CFFI. The similarity of these two price pattern on the periods is 94.99%.
CCOI
CFFI
Unburdened by legacy services or networks, Cogent can capitalize on the latest technologies without realizing excessive costs or cannibalizing more lucrative revenue streams.
Cogent's low-cost structure, a byproduct of how it built its network, leaves other firms unable to profitably compete on pricing for comparable services.
The cash infusion from taking on the legacy Sprint wireline business far exceeds the near-term losses that it will produce. The physical network Cogent received solidifies the cost advantage in its core business.