Cable's Called A Safe Haven


Cable stocks have performed well since October 2002 — rising 37 percent, versus a 7.6 percent decline in the Standard & Poor's 500 — and, despite competitive risks, remain a safe investment, a report from Deutsche Bank Securities analyst Karim Zia concluded. Although Zia wrote that the pending acquisition of DirecTV Inc. by News Corp. and the threat of competitive pricing pressure from digital subscriber line providers are risks, he called the sector "an attractive safe haven" in the near-term. Longer term, Zia continues to be a cable bull, predicting cable will maintain its strategic leadership position as the only platform for providing an integrated bundle of voice, video and data.