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1 edit | reply to tmc8080
Re: wishful thinking
The specific answers as to why the cable business is worth much more most certainly are in the article:
quote:
Cablevision is "going to generate a lot more cash than anybody ever imagined," Moffett said in an interview. "That being the case, it's worth a hell of a lot more than anybody thought."
...
Moffett said the company's revenues are soaring while capital expenses are dropping. The company said in its proxy that capital spending will fall from 14.6 percent of revenues this year to 6 percent of revenues by 2011.
When a business generates significantly more free cash flow than it has in the past, especially when capital spending will decline by more than half, there's significantly more "shareholder value" - even with the standard disclaimers about forward looking statements.
The DOCSIS 3 upgrades are already factored in to the capital plans (since they're projecting 3-4 years out).
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