Monday Rebound for Cable Stocks


Cable stocks got a lift Monday after influential Bear, Stearns & Co. Inc.
media analyst Ray Katz issued a report stating that the sector may have hit

In a report issued Monday, Katz compared current cable stock prices with the
'trough years' of 1995 and 1996 -- the year before Microsoft Corp. reinvigorated
the sector by investing $1 billion in Comcast Corp. stock.

Katz said that at last Friday's closing prices, cable multiples were between
7.9 times and 11.2 times annual cash flow, near the trough multiples of 5 times
to 6.3 times annual cash flow in 1995 and 1996.

'We believe we are getting close to (or are already at) a bottom in
valuations and, therefore, the risk reward for every cable name is as compelling
as we have seen it in many years,' he wrote.

Katz's report, coupled with overall gains in the market -- the Dow Jones
Industrial Average rose 213.21 points and the NASDAQ was up 48.55 points --
resulted in increases for every MSO stock.

Charter Communications Inc. -- hammered in the past few months as a result of
comparisons with troubled Adelphia Communications Corp. -- led the pack, closing
at $5.25 per share Monday, up 96 cents, or 22.4 percent.

The other big gainer for the day was Cablevision Systems Corp., also beaten
down in the past over debt issues, closing Monday at $15.39 each, up $1.11, or
7.8 percent.

Other MSO stocks up for the day included Cox Communications Inc. ($32.07, up
$1.37), AOL Time Warner Inc. ($16.60, up 20 cents), Comcast Corp. ($26.51, up 90
cents), Insight Communications Co. Inc. ($14.34, up 51 cents), Mediacom
Communications Corp. ($9.10, up 38 cents) and AT&T Corp. ($10.30, up 12

Adelphia -- which was expected to file for bankruptcy protection this week --
closed at 17 cents each, up 2 cents.