« NDX Breadth Turns Sour | Main | RKH Breadth »
April 25, 2006
Cable Companies and Earnings Season
The Wall Street Journal reports:
Cable-TV Companies Hold Great Expectations. There have been plenty of high-fives in the cable-television industry as major operators prepare to release first-quarter earnings, starting Thursday with Comcast Corp. While the first quarter is typically a good one for operators, this is expected to be one of the best in years in terms of revenue growth and other financial measures for companies such as Comcast, Time Warner Inc. and Cablevision Systems Corp. All three are expected to add more subscribers than they have for years, setting the stage for the industry to show an annual gain in customers for the first time since 2002.
Comcast has already surged and broke resistance at 28.5 on good volume. The pattern looks like a big double bottom and the breakout projects further strength towards 31. Also notice that the pattern looked like a head-and-shoulders in late March (gray box). However, this bearish pattern was never confirmed with a support break (neckline) and the stock broke the high of the right shoulder on its way up.
Relative to CMCSA, Time Warner (TWX) is underperforming and has yet to breakout. The stock managed to firm over the last few weeks and form an outside reversal on 10-Apr. There was even a high volume advance on 18-Apr, but the stock pulled back. Watch for a move above 17.2 to trigger a mini breakout.
Posted by Arthur B. Hill at April 25, 2006 03:45 PM