ATHM, the market leader in cable modem access has come back to long term support in the low teens: siliconinvestor.com While this chart shows a broken stock, a look at the FA (Fundamental Analysis) and ATHM's unique position in the internet delivery world, I view it as an incredible buying opportunity.
I have used Roadrunner cable modem service for over 2 years, am very impressed and happy with its speed, reliability, and convenience. I personally believe that cable modem is the preferred delivery system for anyone who wants broadband capability and is willing to spend money above the minimum required for a standard dial up service.
Additionally, ATHM is a part of T's grand plan for cable/phone/internet - it IS THE INTERNET component of all this. While T is also down, I don't think that it will be down much longer.
The other strong positive is the connection has with the other cable operaters. This deal is good for another year or two i believe, but by that time ATHM should have the infrastructure in place to assume the commanding position in cable modem internet delivery.
On the negative side, the purchase of Excite appears to be a major blunder, and the company has not impressively executed so far in either customer growth or earnings.
But stocks are measured by future potential as much as past performance, and, in this case, the future potential over-rides the short term weaknesses.
I am holding my position in ATHM, bot at average of 19, and am looking for a price between 30 and 60 sometime next year. I am willing to wait.
I hope this helps. I'm sure some posters here will feel compelled to ridicule my comments. that is their perogative. More constructively, i hope others will post their comments on the investing merits of this company, prop or con, and refrain from personal attacks. thank you. larry |
