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July 23, 2007
Comcast Bidding for Virgin Media?
Big headline is something called City A.M. in the UK claims an inside source says that Comcast is considering a bid for Virgin Media. While Comcast may have requested info from the bankers running the auction I'll be shocked if they bid. I think the Comcast-Virgin Media rumors are being planted by the Virgin Media side to boost the pressure on private equity to bid higher. Comcast has a great groove going and won't mess it up by buying into the hyper-competitive, low growth UK market where cable is not leader as it is in the US. The same article mentions Time Warner as a potential bidder, another rumor I don't believe. Weakness in Comcast or Time Warner on this news should be bought.
Posted by Steve Birenberg at July 23, 2007 09:14 AM in Comcast
1.WHEN I GET ON YOUR SITE,I OFTEN FIRST GET A
MESSAGE FROM A "TURKISH HACKER".IS THERE ANY WAY TO STOP THIS?
2.IT APPEARS AS IF MICC GOT CRUSHED ON TREMENDOUS EARNINGS BECAUSE OF A SLIGHT MISTAKE IN LANGUAGE BY THE CEO AT THE CONFERENCE CALL.THE FUNDAMENTALS REMAIN SOLID.DO YOU BELIEVE IT'S A BUY AT THE PRESENT TIME?
3.IS THERE ANY NEWS ON VMED?
I have never received a Turkish hacker comment and no one else has ever mentioned it.
On MICC, I think the press release clearly read cautiously, especially toward Africa. The margin contraction in Africa was a negative surprise and management said it would continue. A stock like MIC requires no problems and better than expected results. The drop in the stock is being exacerbated by the market where stocks perceived as risky are getting pummeled. I think it is a buy under $80 on a purely fundamental basis but it may take the market to improve and a better quarter to really get it going.
No news I have seen on VMED. The stock is under pressure because of worries that credit is tightening and the private equity firms won't be able to finance a deal for VMED. At a minimum, the tighter standards limit the upside above the $31 that is supposedly on the table. I think it is still fair to assume that a deal will get done and if I still owned VMED, I would hold on. That said without a deal, I think the stock would head towards $20.
Posted by: Steve at July 26, 2007 09:49 AM