Cable Stocks Mixed
Moody's Says Sector Outlook is Positive
By Mike Farrell -- Multichannel News, 9/23/2008 11:32:00 AM
Cable stocks had another mixed outing on Wall Street Tuesday, as the Dow Jones industrial average fell another 160 points as legislators remained skeptical of a proposed $700 billion bail-out plan for the financial markets.
Tuesday’s decline was the second straight day of losses for the Dow—it shed 373 points on Monday—bringing its two-day decline to more than 500 points.
In the cable sector, of the five publicly traded MSO stocks, Time Warner Cable and Cablevision posted modest gains, while Comcast, Mediacom and Charter Communications showed slight declines.
Time Warner Cable closed at $25.03 per share (up 20 cents) and Cablevision was up 79 cents each to $26.54 per share. Comcast fell 62 cents to $19.26 each; Charter was down 2 cents each to 87 cents per share and Mediacom dipped 47 cents to $6.70 per share.
The mixed Wall Street reaction comes on the heels of a report by credit rating agency Moody’s Investor’s Service, which said Tuesday its outlook on the sector was positive, pointing to cable’s strong revenue and cash flow growth in the face of growing competition. In a statement, Moody’s said that cable operators have “neutralized” the competition so far.
“While the large regional Bell operating companies arguably continue to pose one of the biggest long-term risks, incumbent cable TV operators appear to be meeting the challenge, taking far more share from the phone companies of late than they are losing,” Moody’s wrote.
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