Is Comcast Enticing After Recent News?

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With shares of Comcast (NASDAQ:CMCSA) trading around $52, is CMCSA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Comcast is a provider of entertainment, information, and communications products and services. The company operates in five segments: cable communications, cable networks, broadcast television, filmed entertainment, and theme parks. Comcast offers television, video, high-speed Internet, and voice services to residential and business customers. It also operates NBC and Telemundo broadcast networks; provides filmed entertainment under the Universal Pictures, Focus Features, and Illumination names; and operates theme parks, studios, and a dining, retail, and entertainment complex.

Comcast is much more likely to work with Charter Communications Inc. on a bid for Time Warner Cable (NYSE:TWC) than to pursue an offer on its own, said a person familiar with the situation, a major boost to Charter’s hopes of winning the takeover battle. Comcast’s current thinking reflects its unwillingness to pay Time Warner Cable’s stated asking price of $160 a share as well as Time Warner Cable’s disinterest in selling off just some of its systems piecemeal, the person said.

In contrast, Charter has signaled to Comcast in meetings that, if Charter succeeded in acquiring Time Warner Cable, it would be willing to give up TWC’s prize New York-area cable systems to Comcast in exchange for Comcast’s endorsement of its bid, said the person. Charter CEO Tom Rutledge hinted at that stance at a private investor dinner on Thursday, say other people familiar with the situation. Getting the New York systems would be a major victory for Comcast, strengthening its hold on the northeastern U.S. Comcast already dominates Philadelphia and serves part of the New York suburbs.

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