Charter (CHTR) is down over 10% to $3.90. Some of that is in sympathy with the drop in Comcast (CMCSA) which put out earnings this AM. Wall St. was concerned about the larger company’s drop in basic cable subscribers and its high capex.
But, Charter’s problem is much more severe. It has $19 billion in debt, all of it with low ratings. In a difficult debt market, the company is not going to be able to be able to raise more money or do the kind of refinancings that have helped the stock.
Charter needs to increase its capital expenditures to improve plant and equipment to stay competitive with telecoms for digital cable, broadband, and VoIP. Raising its capex in a tight credit market when the company already has so little margin between operating income and debt coverage is going to he hard.
In some ways, it is surprising the shares are not off more.
Douglas A. McIntyre
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.