1-Star Stocks Poised to Plunge: Charter Communications?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cable TV provider Charter Communications (Nasdaq: CHTR  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Charter's business and see what CAPS investors are saying about the stock right now.

Charter facts

Headquarters (founded) St. Louis (1999)
Market Cap $7.8 billion
Industry Cable and satellite
Trailing-12-Month Revenue $7.4 billion
Management CEO Thomas Rutledge (since February 2012)
CFO Christopher Winfrey (since November 2011)
Return on Equity (average, past 3 years) 5%
Cash/Debt $5.0 million / $12.9 billion
Competitors Comcast
Cox Communications
Time Warner Cable

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 58% of the 12 members who have rated Charter believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star jwray01, succinctly summed up the Charter bear case for our community:

Consistently losing money, book value is ~0, and tangible book is around negative 8B. It's headed for yet another bankruptcy. Cable is obsolete and more and more people are cutting the cord, while the valuation of this stock is still in a bubble.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 04, 2012, at 5:20 PM, Pirates1234 wrote:

    Hard to take anything on this site seriously when you can't even list Charter's competitors properly. Comcast, Time Warner and Cox are in the same business, but they all serve different footprints from Charter. This has ALWAYS been the case. Charter competes with DISH, Direct TV, Verizon, AT&T and various smaller overbuilders in the markets they serve, NOT other cable companies. The fact that this is not understood points to laziness - or worse - a complete lack of understanding of this industry. Either way, your position is rendered meaningless. Charter may indeed go into the tank, but it won't be because they lost out to the other cable companies you list as "competitors." Do your homework!

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