Can Time Warner Cable Move Higher After Settling Its Dispute?

With shares of Time Warner Cable (NYSE:TWC) trading around $110, is TWC 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

Time Warner Cable is a provider of video, high-speed data, and voice services in the United States, with systems located in five geographic areas: New York, the Carolinas, Ohio, Southern California, and Texas. The company offers its residential and business services customers numerous services over its broadband cable systems. With such a large and growing user base, look for Time Warner Cable to continue to see rising profits from its media, entertainment, and communications offerings.

Time Warner Cable’s dispute with CBS (NYSE:CBS) has finally been settled to Time Warner’s disadvantage. The cable provider was forced to pay a significant increase in retransmission fees, although the figure was still below $2 per subscriber per month, sources told Bloomberg. Thus ends the monthlong blackout of CBS programming from Time Warner Cable. The agreement comes just in time for National Football League games — some of the most lucrative programming on television — to start broadcasting.

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