While the flood photos/videos of Iowa and surrounding states are hard to believe, the impact on MCCC earnings appears to be minimal at the current time (roughly one-third of MCCC’s subscribers are in Iowa). We believe the impact from customer credits (displaced MCCC subs) and lost subscribers (MCCC subscribers whose homes were destroyed) is likely…
Last Saturday night, Monsters Inc. appeared on ABC’s Wonderful World of Disney. Disney is now making each week’s movie available on Disney.com until the next episode of Wonderful World of Disney airs the following Saturday. Click Here to Watch Monsters Inc. online now (short pre-roll commercial and then no commercial interruptions and it looks quite…
We downgraded America Movil to Sell from Neutral based on our lower estimates and continued concern that the company will report quarterly results below consensus estimates. Our downgrade to Sell from Neutral is essentially based on the same reason that we downgraded the stock to Neutral from Buy in late April. We are concerned that the…
Preliminary wireless industry subscriber data from Brazil indicates another solid month of subscriber net additions in May 2008. These estimates are sometimes slightly revised when the final numbers are released. May industry net additions of 2.8 million beat our estimate of 2.3 million, rising 27% annually and 46% sequentially.
Sprint announced what it considers to be simplified pricing today which basically means that you don’t have to click a bunch of add-on boxes to get data and messaging when ordering a phone. The new rate plans included an implied rate cut of 20% to the high-end family plan. Sprint’s new rates follow T-Mobile, which…
Dreamworks Animation’s Kung Fu Panda is clearly targeted as a family film, with young boys as its core audience. However, its ability to crossover into other demographic segments could be limited to a degree by the strong tracking among Men Under 25 and Boys 12-16 for You Don’t Mess With Zohan (Sony’s Adam Sandler picture),…
While the strength of Disney’s cable networks will continue to drive Disney’s earnings, we believe the risk/reward is not compelling at current levels. We are increasingly confident in our FY (Sept) 2008 EPS estimates, however, our 2009 visibility is significantly lower. Given our comfort with cable network growth, the two key swing factors for Disney…
Last week, Viacom indicated that its advertising sales were tracking below their prior expectations for Q2 2008. Viacom management, while trying to be open and honest with investors, failed to put the reduction in US ad sales guidance into a broader context. Viacom, exceeded earnings expectations in Q1 2008, should benefit from a solid upfront…
T-Mobile USA announced a new unlimited family rate plan that offers a substantial discount for heavy family users and could spur rate cuts by its competitors given the lack of available industry growth. We believe that T-Mobile can be successful in taking market share with price cuts even if there is a consumer perception that…
We are upgrading MCCC to BUY from NEUTRAL, with an $8.50 one-year target price (7.3x ’09E EBITDA, 19x ’09E FCF, and $3,075/sub). Over the past 18 months our investment thesis on Mediacom has generally been SELL, given difficult retransmission consent/programming battles and more aggressive competition. What has changed and why upgrade now with MCCC shares…
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