Cable stocks stage a modest comeback
After a brutal week last week for the entire market, service provider stocks bounced back, some from 52-week lows.
There was a mild downward turn in mid-day trading on Friday, barely enough to diminish the gains of the business week.
Charter, Mediacom, Cablevision, Comcast, Time Warner Cable, Knology, SureWest, Shaw Communications, Cogeco and RCN were among those whose stock values have all increased over the past five business days.
Phone and satellite companies have also been rebounding over the same period, including DirecTV, Dish Network, Verizon, CenturyTel and AT&T.
Of those stocks that rallied over the last five days, many saw increases in the value of their stock in the 15 percent to 20 percent range.
The overall market has been yo-yoing, which makes it hard to attribute stock movements to any one cause, but cable in general was no doubt helped by Comcast’s report this week of solid Q3 numbers and its sanguine assessment of how cable may fare as the economy continues to sour.
The notion that cable tends to hold steady when the economy turns down was summed up in our favorite headline of the week, from Wired: Cockroaches and Comcast Will Inherit the Earth (story here).
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