Is Comcast Corporation (CMCSA) Backing Themselves Into a Corner With Poor Customer Support and Rising Prices

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I hear a lot of bad stories on customer support issues experienced by cable company customers, and I hear a lot about the undeniable fact that cable bills continue to skyrocket. I hadn’t thought much about this until I recently moved into a new home…. That’s when reality struck.

I’ve been a Comcast Corporation (NASDAQ:CMCSA) customer in one form or another for over a decade, but when I moved to a new home in Fort Myers, Florida, I experienced much of what I had previously read about. I work at home, so I called 3 weeks in advance of my move to emphasize how important it was for my cable to be hooked up prior to my move-in date. Low and behold I ended up living in my home for over 2 1/2 weeks before my cable was actually hooked up and working properly.

Customer support was terrible and I literally spoke with over 10 different employees before I had my actual service hooked up and running. Each and every person I talked to seemingly had no record of anything that had been going on before hand. At one point the service man couldn’t make it to my house in time, so they wanted to reschedule for a new date over a week away. Keep im mind I work at home and use my internet on a daily basis. I literally had to yell and curse my way to the top of the cable-chain-of-commands before I actually could talk to someone who agreed to send someone out to fix my problem the next day — Again 6 weeks after my initial call for service hookup and almost three weeks after my move-in date.

If that wasn’t enough, when I got my first bill — for a whopping $240+ per month — I almost had a stroke. This was after I told the rep that I didn’t want to spend anything over $170/month. Over the past three months of service I must admit I’ve had no hiccups, and service has been great, but I also must admit that I use Netflix and Amazon Video for about 70% of my TV viewing. These services cost me less than $20/month (1/12 of what I pay for Comcast). I haven’t even begun exploring other free and low dollar streaming services either.

My point here is that Comcast has a problem, and the continual increasing rates aren’t helping. I have made up my mind that when my one year contract expires, I am cancelling my TV service with Comcast — or downgrading to the cheapest package possible — and relying on streaming services for my TV watching experience. I can’t be the only one….. Can I? Comcast stock increased 1.86% or $1.01 on January 22, hitting $55.33. About 9.87M shares traded hands. CMCSA has declined 8.52% since June 18, 2015 and is downtrending. It has outperformed the S&P500 by 2.50%.

From a total of 11 analysts covering Comcast Corporation (NASDAQ:CMCSA) stock, 7 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $80 while the lowest target price is $61.0. The mean of all analyst targets is $69.07 which is 24.83% above today’s ($55.33) stock price. Comcast Corporation was the topic of 22 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Credit Suisse maintained shares on January 6 with a “Outperform” rating. RBC Capital Markets maintained shares with a”Outperform” rating and a $68 target share price in their report from an October 28. Pivotal Research maintained CMCSA stock in a recent report from December 17 with a “Buy” rating. MoffettNathanson upgraded the rating on August 19. MoffettNathanson has a “Neutral” rating and a $67 price target on shares. Finally, Suntrust Robinson initiated the stock with a “Neutral” rating in a report they issued on a November 11.

The institutional sentiment increased to 0.96 in Q2 2015. It’s up 0.04, from 0.92 in 2015Q2. The ratio improved, as 84 funds sold all their Comcast Corporation shares they owned while 451 reduced their positions. 92 funds bought stakes while 421 increased their total positions. Institutions now own 1.69 billion shares which is 0.34% less than the previous share count of 1.70 billion in 2015Q2.

Mediatel Partners holds 84.46% of its total portfolio in Comcast Corporation, equating to 2.91 million shares. Aristeia Capital Llc owns 5.97 million shares representing 17.29% of their total US portfolio. Moreover, Lansdowne Partners (Uk) Llp has 13.3% of their total portfolio invested in the company, equating to 27.75 million shares. The United Kingdom-based Nevsky Capital Llp has a total of 12.96% of their portfolio invested in the stock. Rit Capital Partners Plc, a United Kingdom-based fund reported 948,000 shares owned.

Since March 11, 2015, the stock had 0 buys, and 5 sales for a total of $9.74 million in net activity. Salva Lawrence J sold 4,524 shares worth $260,130. Cohen David L sold 63,066 shares worth $3.53M. Block Arthur R sold 2,258 shares worth $141,906. Smit Neil sold 30,732 shares worth $1.93M. The insider Angelakis Michael J sold 382,566 shares worth $22.32M.

Comcast Corporation is a media and technology company. The company has a market cap of $135.63 billion. The Firm has two primary businesses, Comcast Cable and NBCUniversal. It has 17.34 P/E ratio. The Company’s business line comprises five divisions: Cable Communications; Cable Networks; Broadcast Television; Filmed Entertainment, and Theme Parks.

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