Comcast is dirt cheap ahead of spin-off
The guest argued that Comcast is highly undervalued and represents a compelling buy ahead of an anticipated corporate split.
The argument
David Katz of Matrix Asset Advisors argued that despite negative subscriber trends, management is actively working to maximize shareholder value. He expects a corporate split in the next 12 to 18 months, with the two resulting pieces worth significantly more than the current combined entity.
The thesis, stress-tested
✓ What validates it
- ✓Formal announcements or filings detailing the timeline and structure of the corporate split
- ✓Stabilization or improvement in subscriber metrics in upcoming quarterly earnings
▸ Risks discussed
- ▸Continued negative trends in subscriber growth could weigh on sentiment before the split is finalized
Hear it yourself
"And it's a good time to talk to David Katz, president's CIO Matrix Asset Advisors, because he says there's no fog to Comcast, it's the one to buy. David. Top of your list is CMCSA discuss. Basically, the company has been under some very negative trends for the last few years in terms of subscribers."
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