Biz Briefs: Investors Warming to Cable Companies

Jun 5, 2006  •  Post A Comment

Following a year in which many on Wall Street turned their backs on cable companies, a Kagan Research study shows that investors are changing their tune in 2006, with cable stocks up 19 percent so far this year. That’s three times the growth of the broader stock market and, according to Kagan, reflects that investor fears about competition from the Internet, telephone companies offering television and portable entertainment devices are easing. The report says that cable companies’ bundle of high-speed Internet, telephone and television service has given them a jump on the competition and will help drive per-subscriber revenue growth by more than 77 percent in 2006.

Granite Plans Big Interest Payment

Granite Broadcasting intends to make a $19.7 million interest payment on its debt securities within an allotted 30-day grace period, removing a cloud that has loomed over the debt-addled broadcaster for months. New York-based Granite told Wall Street last week that it will make the payment immediately following the completion of its sale of two television stations. The station sales, generating an estimated $150 million, are expected to be completed by June 30. The interest payment was due June 1, with a 30-day grace period, and is tied to debt securities that mature in 2010.