The most recent quarter was something of a good-news, bad-news affair for cable kingpin Comcast (NASDAQ:CMCSA). While video subscriber numbers continue to shrink, the company nevertheless watched its net income increase by 22% year over year.

But despite its operating successes, the company's CEO Brian Roberts refused to discuss details of the company's ongoing discussions with General Electric (NYSE:GE) regarding the possible combination of the largest cable multi-systems operator and GE's NBC Universal. The combination is expected to be approved within the next few weeks, but there remain a number of possibilities that haven't been described publicly.

As to Comcast's quarter, the company continues to watch some of its video subscribers peel away, while its high-speed data and telephone service are growing, albeit at a slower pace than before. In the most recent quarter, for instance, video customers dropped by 2.7%, while high-speed Internet subscribers grew by 6.4%, and voice customers climbed by 20.3%. Total revenue generating units (one customer taking one service) expanded by 4.5%.

It appears that, at least from Comcast's perspective, there clearly is strength in the cable industry. For instance, Comcast's revenue per video customer rose 5.6% to an average of $116.91 per month, from $110.67 in the third quarter of 2008. At the same time, the company's free cash flow increased to $1.1 billion, from $928 million on a year-over-year basis.

So why have the cable operator likes of Comcast, Time Warner Cable (NYSE:TWC), and Cablevision (NYSE:CVC) been treated so shabbily by the market during the past year? My response, as someone who once followed the industry as an analyst, involves the investment community perpetually dredging up competitive boogeymen for cable.

Earlier in this decade, the DSL offerings of the telephone companies were thought to be breathing down the necks of the cable operators' Internet product -- a threat that since has been put to sleep. And lately, the perceived threat has come from the triple-play offerings of Verizon (NYSE:VZ) and AT&T (NYSE:T), or video from satellite operators like DirecTV (NASDAQ:DTV).

In my opinion, Comcast is driven by an unusually strong management team. In part for that reason, my advice to Fools with a media bent is to watch the company closely. It's mistreatment by Mr. Market has been overdone, and stands an excellent chance of being reversed well within your investment time horizon.

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