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One of the only undervalued sectors in today's hot market is cable and the stocks are just beginning to appreciate to their fair value levels. Comcast is perhaps the most undervalued at 5.5 1997E Operating Cash Flow for a business which is growing its cable cash flow at 10%, its cellular phone cash flow at 15%, and its electronic retailing division cash flow (QVC) at 12%. The concerns about cable competition are way overblown and the introduction of cable modems and digital set top boxes will entrench cable again as a near monopoly with price deregulations. Comcast at 8.5x cash flow will be a $25 stock by mid 1997. BUY NOW! |
