Cable Picks Up
by Staff -- Multichannel News, 4/28/2008 2:00:00 AM
Comcast’s shares have picked up a bit this year, from $17.70 on Jan. 2 to 19.76 last Thursday. And now, Sanford C. Bernstein analyst Craig Moffett expects Time Warner Cable, Comcast and Cablevision Systems to “outperform” the general market.
The second half of the year offers “reasons for optimism.”
Moffett conservatively estimates cable will pick up 10% of the 14 million households who discover they will lose their over-the-air analog TV signals, as the Feb. 17, 2009, federally mandated transition to digital transmission from local TV stations nears. The second half will also bring boosts in ad revenue from the Olympics and presidential election.
TWC: Watch for an announcement this week on whether Time Warner Cable will be spun off as the first “truly independent” investor-owned cable company. Don’t be surprised if the company also decides to begin paying a dividend.
COMCAST: The launch of Comcast’s business services initiative has given investors “some reason for optimism” but the fruits are a year or more away. Margins could go up slightly.
CABLEVISION: “The cheapest stock in our coverage universe by a country mile,” Moffett said. Cablevision has gained subscribers, even in face of the “Verizon FiOS onslaught.”
Q1 REPORTS:
April 30: Time Warner Cable
May 1: Comcast
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