Comcast Attracts Bullish Sentiment Following Latest Report

Posted Feb 17th 2011 6:00PM by Steven Mallas
Filed under: Earnings Reports, General Electric (GE), Comcast Cl'A' (CMCSA), Media World

Comcast Corporation (CMCSA) reported earnings for the fourth quarter on Wednesday. Today, the company's shares hit a new 52-week high of $25.39 during the intraday session (there's still more than two hours left until the closing bell rings, so that high point could eventually change).

The 52-week low for the cable business is $15.55. The one-year chart tracks the positive momentum of the equity. Will the stock break out to new heights from this juncture?

I'll tell you, the news seems to be good. According to TheStreet.com, adjusted profit of 35 cents per share went beyond the overall projection by three pennies. Free cash flow for the quarter soared 46%. The corporate press release says that, for the entire year, free cash flow jumped 22%.

Management must believe in the money-generating capabilities of its operations because it chose to give a sizable raise to the dividend. How does a 19% increase to the quarterly payout sound?

Sounds fabulous to me. I'm more bullish on Comcast today than I was in late October. There probably are risks attached to buying near the 52-week high, but I am encouraged by the overall fundamental situation.

The shares should probably be looked at on dips. As I'm sure you know, Comcast took control of NBC Universal in a transaction with General Electric Company (GE). If NBC Universal benefits from the theoretical marketing/distribution synergies that are available to it following the deal, then Comcast's stock may have a bright future ahead of it. For further opinion on this company, check out Joseph Lazzaro's assessment.

Disclosure: I don't own any company mentioned; positions can change without notice.