ok, now that we've all settled down, some pros and cons on ATHM
cons:
Short term, right now the merger with RR looks highly unlikely so some of the money that flowed into this stock betting on this possibility is going to go looking for another play or already has.
Long term, if Ah is right and Comcast has jumped ship and even though, for reasons I have cited earlier, I believe this to be a mistake on their part...it is very bad news for ATHM. The press coverage on T's response and TheStreet.com interview looked very much like corporate damage control IMO.
Pros: Short term, this stock is just about the only pure-play for broadband and broadband is this year's mantra, everyone wants in and we all know when there are more buyers than sellers the stock goes up. Not withstanding the split and the people who tend to play these things.
Long term, even if Comcast is planning to go it alone, they might find they are compelled to stick out the remaining two years agreement. In two years the story may be vastly different. These things tend to ramp up slowly and then explode, the cost of having their own might be astronomical at that point.
There is never a simple answer when you are talking about a stock who's value lay in the future, because there is an ever changing landscape to deal with. This is why we're here talking about it.
GAZ |
