Summary
Did Comcast overpay for Sky? Only time will tell, yet we can make some comparisons to get an idea.
The headlines are the drumbeat that suggest cable companies are going the way of the dinosaur, the facts tell a different story.
Comcast is taking steps to expand and grow the Universal part of NBCUniversal.
Sometimes investing means ignoring popular (or in this case unpopular) opinion and going with the facts. There is a company that appears relatively cheap on a valuation basis. The same company has a strong lineup of revenue producing properties coming this year. Our mystery company grew one of its most important lines of business by nearly 10% annually in the last quarter. Investors who are looking for income get a yield north of 2%, and analysts expect strong earnings growth over the next several years. Last, this company just made a significant acquisition that could help drive earnings and cash flow over the next few years. There is just one problem facing the stock… the name Comcast (NASDAQ: CMCSA). So many investors ignore this name based on the company’s reputation, yet this spells significant opportunity for those willing to invest based on the facts.
