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Media

Cramer Sticks With Charter Communications

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By Douglas A. McIntyre Updated Published
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On tonight’s MAD MONEY on CNBC, Jim Cramer said to stick with Charter Communications (CHTR).  It has been a big underperformer since he recommended it.  He said that Comcast and Insight Media unwound a joint venture and now that Comcast has control in Indiana Illinois is a big deal for it.  Cramer said the value is $4,583.00 in enterprise value per subscriber.  CRamer said the value is 12% lower on an enterprise value per subscriber basis.  The second show was the huge premium that Comcast paid to acquire Patriot in New Jersey on a 50% premium to CHTR enterprise value per subscriber.

Cramer said he is no longer worried about this stock because it is cheap.  The values of subscribers are up because of the Triple Play.  The company is in the circle of a steady debt refinancing.  His 5.4 million subscribers in premium locations may be worth more. 

On a side note, Cramer didn’t mention that even if a buyout offer came out at a 50% premium that many would probably not go along with the buyout.  Sure there is value there, but if it can’t be unlocked it doesn’t matter that much.  The stock closed at $2.84, is up close to $3.00 after-hours, and has a $0.97 to $3.58 trading range for the last 52-weeks.  This one was over $5.00 in 2004 and over $8.00 5-years ago.

This one is also one that management is going to have a hard time trying to fix.

Jon C. Ogg
April 10, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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