Looking over the latest 10Q, I see a number of disturbing transactions (by which I mean disturbing to me, possibly because I can't analyze them very well, and maybe not at all significant to investors):
"PHONES" debentures due in 2029 are issued in March ('99), but then are all redeemed in July and at a loss. The loss ($30.5M) will be recorded in the 3rd quarter.
In March '98 call options were sold based on unrestricted" investments in TCI (etc.) for $20.7M. Then I read: "During the six and three months ended June 30, 1999 and 1998, we recorded investment expense of $100.8 million, $40.2 million, $49.4 million and $25.6 million, respectively,related to changes in the value of the call options and settlement of the TCI and TCI Ventures call options."
Looks to me like management has been trying to protect the company from fluctuations in the "portfolio" of stocks TCI, T, etc. that they have or had. And it's all backfired.
I guess there's (apparently) so much good stuff happening at Comcast, that there's bound to be some things that are tried that don't work out well. But transactions like these hedges that seem to be poorly thought out and executed seem to indicate a lot of sloppiness imo. (Realizing that my opinion is based on my lack of knowledge about hedges, Comcast, Comcast internal portfolio goals, etc.--- Just would like to get some confidence here that these guys know what they are doing with their monies, not just playing around because the co. is now cash/investment rich)
Paul Senior |
