Cable stocks got caught up in the technology sell-off Monday, with some
companies losing as much as 8 percent of their value.
But despite the downturn, SG Cowen Securities Corp. analyst Gary Farber said
cable stocks held their own.
The NASDAQ exchange lost 129.4 points in heavy trading Monday, finishing at
1,923.38, its first time below 2,000 since December 1998. The Dow Jones
Industrial Average was down more than 400 points to 10,208.25.
'[Cable stocks] have had less overall declines than the other sectors,'
Farber said. 'When the market is like this, it's almost like a domino
AOL Time Warner Inc. was the biggest loser among cable operators, dropping
8.4 percent, or $3.60 per share, to $39.27. Other big price losers in the cable
sector included Adelphia Communications Corp., which dropped $2.13 per share to
$38; Comcast Corp. (down $2.13 to $43.25); Cox Communications Inc. (down $1.08
to $41.41); Insight Communications Co. Inc. (down $1.75 to $24.06); and AT&T
Corp. (down 94 cents to $22.67).
Cablevision Systems Corp. lost 44 cents to close at $84.06; Classic
Communications Inc. fell 6 cents to $2.94; and Mediacom Communications Corp. was
off 25 cents to $20.75.
In the programming sector, Viacom Inc. and The Walt Disney Co. got hammered
after Credit Suisse First Boston analyst Laura Martin cut her earnings estimates
for both stocks based on a weak advertising market.
Viacom fell $4.24 each to $45.31 after Martin said she expected its
first-quarter losses to widen to 11 cents per share from 8 cents. Martin kept
her 'strong buy' rating for Disney, but she cut her 2001 earnings estimate from
$1.02 per share to 95 cents. Disney shares dropped $2.21 each to