Telecom/cable stocks

Posted by: Michael Mandel on June 21

The willingness of Cablevision to go private just reinforces what I’ve been saying—that telecom/cable stocks are undervalued. The share of the economy going to information/communication is no higher than it was in 1997, despite the dramatic increase in capabilities. That’s going to change soon, I believe.

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Reader Comments


June 21, 2005 01:59 PM

Another build it and they will come argument? Where have you been the last five years? Capability doesn't drive anything, certainly not value to the customers. All things being equal, this would indicate even lower prices and less of the economy going to telecom. Sometime in the distant future, value to the customers will increase and demand for it may pick up, although more than likely it will simply cannablize some of the monopoly profits of the entrenched carriers.

Michael Mandel

June 24, 2005 05:03 PM

I think that it takes time to understand how to use new capabilities--years.

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Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.

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