Filed under: Television, Comcast Cl’A’ (CMCSA), Verizon Communications (VZ), Time Warner Cable (TWC), Cramer on BloggingStocks

TheStreet.com’s Jim Cramer says this major player’s lowered guidance shows why its whole sector is uninvestible.

Is it EchoStar (NASDAQ: DISH) (Cramer’s Take)? Or is it foreclosures? Is it DirecTV (NYSE: DTV) (Cramer’s Take) or is it bills that are too high? Is it Verizon (NYSE: VZ) (Cramer’s Take) or is it house poor fears?

We will debate the Comcast (NASDAQ: CMCSA) (Cramer’s Take) blowup — it just cut its forecasts for 2007 sales, new subscribers and cash — for a long time. Trying to figure out how a monopoly utility that we used to regard as a utility that could no more be shut off than Con Ed, has become a totally discretionary competitive item that needs to be sold and can’t be pulled.

The implications either way show you the limits of this former wonder industry. For all of the years I have been in the business, investing in cable stocks worked. The companies always grew with consistent cash flow and that was enough. They were utilities that always talked about how dividends weren’t tax-advantaged and instead focused on the broad expansion and cash flow growth.

Continue reading Cramer on BloggingStocks: Comcast’s blowup cuts cable

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This entry was posted on Wednesday, December 5th, 2007 at 4:47 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.