Bad Day For Charter

Quite a sell-off today for CHTR:


Subscriber Losses Drive Charter Stock to 52-Week Low

Has Charter (CHTR) Reached The End Of The Road?

"The number that scares shareholder is the $453 million in interest expense. That is an awful lot for a company that reported only $210 million in cash flow.

Charter is in real trouble now. Billionaire Paul Allen controls the company. And it is going to cost him some real dough to get out of this."

In fact all cable companies are frowned upon by professional investors right now - Why Wall Street Hates Comcast?

Update from Neil Smit, CEO of Charter, in an email to employees:

This morning we issued our third quarter financial and operating results. I am very pleased to have reported our 4th consecutive quarter of double-digit revenue and adjusted EBITDA growth. We are demonstrating consistency in our financial results.

Although our quarterly revenue generating units (RGUs) decelerated from the first half of the year, we have already taken steps to regain RGU growth momentum, and we saw a rebound in RGU trends as we moved through the quarter. Nevertheless, investors were disappointed in third quarter operating performance of Charter and many of our industry peers.

As a result, Charter’s stock is trading lower today. In fact, over the past few months, along with the overall market, most companies in our industry, have traded lower as increasing competitive advertising and a softer housing market impacted results.

We must remain focused on enhancing the customer experience and growing our company, which I believe are the best ways to improve the stock price. We must not let volatility in the stock market distract us from achieving these goals.

While there is much work yet to be done, we have a lot to be proud of, and I appreciate your hard work and dedication.

Neil