Tags: Cablevision | stock | price | CVC

Cablevision Stock Finds Price Footing

By    |   Thursday, 06 Oct 2011 01:39 PM

Being a cable company in an Internet society may sound like risky business, but cable giant Cablevision (CVC) has been getting down to its core business in a way that investors seem to like. It seems to have found its price footing on moving ground.

Recent deals to consolidate its focus on cable include spinning off its ownership of Madison Square Garden (MSG) last year and letting its successful American Movie Classics channel go its own way in June, though CVC’s stock suffered significantly after losing the channel.

Despite hitting a 52-week low in early September, just a week later the company’s stock began to recover. It help that CVC announced a deal with Time Warner (TWX) that will allow CVC subscribers to access Turner Networks, which includes CNN, TNT, and TBS, on smartphones, tablets, and laptops.

The Turner deal matched up with strong financials coming out of CVC’s second quarter earnings in late August, which showed seven quarters in a row of double-digit cable advertising growth, including 12.8 percent during the most recent period. The company has recovered well and all eyes are on a strong future.

In mid-September, Barclays Capital said in a note to investors that challenges from its competitors as well as damage from Hurricane Irene are already incorporated into the share price, opening the door for price growth. The analysts kept an overweight rating and $31 price target for the stock.

Streaming future

Despite Cablevision having spats with its cellphone competitors such as AT&T (T) and Verizon (VZ), it’s possible that the company may have a small crush on DVD rental giant Netflix (NFLX). Or, it’s aware enough of the possible threat Netflix is to cable’s future that CVC management wants to keep it close.

"I'd love to sell Netflix as a service on my cable system. Why not?" Cablevision Systems Corp. COO Tom Rutledge said at a Bank of America conference, adding that he'd prefer to sell traditional cable networks on an à la carte basis. The company already allows users to funnel Netflix movies via PCs to TVs using its Optimum Link product.

Cablevision next reports on Nov. 3.

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Being a cable company in an Internet society may sound like risky business, but cable giant Cablevision (CVC) has been getting down to its core business in a way that investors seem to like. It seems to have found its price footing on moving ground. Recent deals to...
Cablevision,stock,price,CVC
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2011-39-06
Thursday, 06 Oct 2011 01:39 PM
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