Player Avatar TMFDeej (99.28) Submitted: 7/13/2010 7:18:41 AM : Outperform Start Price: $17.99 CMCSA Score: +63.68

Any industry that can piss me off and yet continue to get me to send them checks every month like the cable industry has been doing for years must be doing something right. People always talk about how cable television is going to be replaced by Internet programming, etc... For some people it will, but most of us will continue to send our local monopoly cable company month after month after month. I came across a great article on Comcast (CMCSA) in Forbes this morning. The piece talks about why Oakmark's famous mutual fund manager Bill Nygren likes Comcast at this level.Nygren makes a compelling argument for why the NBC acquisition was a home run for the company. Im' not big on content providers like NBC but the way Nygren makes it sound Comcast is almost getting the company for free. 1. Comcast got NBC Unversal cheapComcast agreed in December to buy NBC Universal for $30 billion. But in reality, Nygren says, Comcast is paying only $6.5 billion in cash plus its cable-programming assets. NBC Universal will be placed in a joint venture -- 51% owned by Comcast, 49% by GE -- that Comcast will manage. Comcast has to pay GE only 25% of any increase in the joint venture's value during its seven-year duration. Notes Nygren: "Comcast won't have to use its own capital to make the payments -- it'll use cash flow generated by the joint venture. Effectively, it's using GE's money to pay GE. So Comcast put up $6.5 billion today for 100% ownership seven years from now..."NBC is producing strong cash flow out of its cable networks -- USA Network, Bravo, MSNBC, CNBC, and others." As the deal awaits antitrust approval, Nygren thinks shares are still priced right: "At the current price [about $18], I consider Comcast to be one of our most attractive holdings."As I mentioned, people always talk about how cable television is going to be replaced by Internet programming, but even if one does turn off their cable television and begin watching shows on their computer, where do you think that the bandwidth that they're using comes from? ...The cable company. Sure one can use cellular service, but that's not as fast, not as reliable, and not free anyhow.For a while, people were afraid that telephone company television, such as Verizon's FiOS would give cable a run for its money. Nope, VZ has totally botched that one. It would have been better off just giving investors their money back than throwing it away on FiOS.Comcast is cheap, it pays a dividend, and it bought NBC for practically nothing. I am adding CMCSA to my CAPS portfolio today at around $18.50. Deej

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Member Avatar BBRAF (< 20) Submitted: 11/12/2010 7:28:02 AM
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well said.i agree with nigren and you.let me add that comcast will exprience some degree of decrease in capital spending since most of their network is now in place.

Member Avatar XMFCinco (29.96) Submitted: 12/1/2010 11:14:05 PM
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It makes me sad that a company with such god-awful customer service can succeed. I wish someone would blow up the cable monopoly. The thing about it is that Verizon is equally terrible when it comes to service. Both of their cable boxes are useless, inefficient pieces of trash. The demand for TV/Internet is SO HIGH in today's world I can't understand why there isn't better competition for these two knuckleheads. While you may be right that the NBC acquisition is good, I just can't bring myself to invest in a company I hate so very much. It's like drafting the best player on your least favorite team in a fantasy football league. Even if it would help you, you don't do it just because your heart wants them to fail.

Member Avatar TheDumbMoney (48.11) Submitted: 12/3/2010 8:16:30 PM
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Switch to AT&T U-Verse. I have moved around, and have thus had Comcast, TimeWarner, and one other smaller company I can't remember. They were all horrible. Random hours-long or day-long outages. Interminable customer service waits. U-Verse service and quality has been vastly, vastly superior, at a similar price. Disclosure: I own AT&T stock. :-) But I would recommend it anyway, totally and completely.

Member Avatar dataguru61 (47.82) Submitted: 11/12/2011 7:28:17 PM
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I own both AT&T and Comcast.. I'm a customer of both.. Lately, I'm noticing that the customer service for Comcast is getting better.. and it is a monopoly where I live.. So where there's a monopoly.. there's cash.. I'm holding on Comcast

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