The big cable names like Comcast (CMCSA), Time Warner (TWX) and Cablevision (CVC) grab a lot of headlines with their triple-play bundles, but there’s a new cable company nipping at their heels.
Charter Communications (CHTR) is up a whopping 253% over last year. Neil Smit, the company’s CEO, joins the guys on the Fast Line to discuss what is driving Charter’s amazing performance.
Smit says Charter is in the early phases of telephone deployment, which is the cornerstone of the triple play bundle. Much of the company’s growth is comparable to what its competitors saw when they rolled out their telephone operations, he says.
Video On-Demand is a service that Smit sees great potential to drive cash flow, as well. From movie releases, to advanced advertising, to targeting local content, V.O.D. has serious upside potential for all the cable companies, including Charter.
Amid news todaythat Clearwire signed deals with satellite providers Echostar (DISH) and DirecTV (DTV) to provide high-speed internet to satellite customers, Smit contends that Charter still offers superior bundled services to the satellite providers. “Clearwire has about a 3% footprint overlap with us,” he says.
The guys are still split, even with Charter’s amazing stock run. Eric Bolling says he doesn’t know enough about it yet and Guy Adami said he would get behind it once it gets free cash flow.
Pete Najarian likes the story for the Video On-Demand aspect. He thinks that part of the business will give Charter the cashflow Guy says it needs.
Tim Seymour thinks this is an exciting story in another very exciting area.
Trader disclosure: On June 15, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Seymour Owns (TIE), (AAPL), (CCJ), (EEM), (INTC), (SXR:TN), (TWX), (USU), Gazprom, (MBT), (MTL), (GLD), (VIP); Red Star Asset Management Is Short (EEM), (MBT), Gazprom; Bolling Owns (ICE), (NMX), (MPEL), (T), Sugar; Najarian Owns (CHL), (EMC), (MS), (.VIX)
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