Charter Communications, the ultra-troubled cable firm, watched shares short in the company’s stock rise by 14.2 million to 76.2 million shares. It was the largest increase in a short position in December for a stock traded on Nasdaq.
The company is awash in debt. The stock has gone from a 52-week low of $.88 to a recent price of $3.16. Wall St. may think that is just too far, too fast. The stock has gotten some analyst upgrades recently, but the company’s shares have not advanced in a month.
To quote Morningstar’s most recent analysis of the stock: "Pursuing growth while supporting a dangerously high level of debt is a delicate balance that we are not confident Charter can achieve without a major restructuring."
The stock is too expensive.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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