GO
Loading...

On the Phone with Comcast's Brian Roberts

Tuesday, 13 Mar 2007 | 7:30 PM ET

Cramer was concerned about an attitude on the Street lately that was putting downward pressure on Comcast stock. Apparently analysts think that CMCSA's increase in capital spending has to do with a fear of competition from Verizon. So he brought Comcast Chairman and CEO Brian Roberts on the show to get the full story.

"We upped our spending because people are buying our new products in record numbers," Roberts said.

On the Phone with Comcast's Brian Roberts
The chairman & CEO of the country's largest company talks with Cramer

Triple play -- phone, internet and cable -- subscriptions are soaring. The company has gotten as many as 50,000 subscriptions for phone alone in a week. And Comcast's product growth rate is up 30% over last year, the CEO says, and that costs money.

As for competition from Verizon, Roberts quotes figures from the Philadelphia and Washington, D.C. areas over the last two months: Comcast has gotten 25 times more phone customers than Verizon has gotten video. The company sold 5 million new products last year, working off a customer base of 24 million. Roberts expects 7 million sold next year.

And don't think the capital expenditures are going to take away from the company's share buyback plans. Comcast has bought almost 10% of the stock back over the past two and a half years and have authorization from the board of directors to buy a total of $7 billion worth.

Cramer's bullish. "How 'bout pulling the trigger on this?!" he says. "It's money in the bank!"

Questions? Comments? madmoney@cnbc.com

  Price   Change %Change
CMCSA
---
VZ
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.