Boston, MA 10/14/2014 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA) is heading towards a dip, quite steadily over the past week. The last recorded dip had been 1.86%; declines have been commonplace owing to a chain of events.
Chapter 11 Reorganization Plan
Lately, Houston Regional Sports Network had an upper hand during the procedural approval of reorganization plan, and defeated CMCSA. The onus lies on the judge Marvin Isgur, to take a decision during a confirmation hearing in the subsequent week. In all likelihood, AT&T Inc. (NYSE:T) and DIRECTV (NASDAQ:DTV) would emerge as the new network owners who are competent to coordinate and handle the broadcasts of Rockets and Astros games.
Marvin Isgur’s Views
In the hearing last week, Comcast Corporation (NASDAQ:CMCSA) was put down, as Isgur commented that the media agreements or rights that are bestowed upon CMCSA are rather inconsequential in nature. CMCSA is heading towards the second phase, already being on the back foot.
Isgur also commented that there were unpaid costs that amounted to $116.9 million. He also added that CMCSA had initially filed an involuntary petition, sometime in FY 2013. The company had warranted each of the creditors that it would pay back the debts in full. However, this didn’t pan out; Comcast Corporation (NASDAQ:CMCSA) changed its disbursal strategy, and forced the whopping losses upon the creditors.
This resulted in the other key players – AT&T and DTV come into the fore to handle and own the rights to broadcast events pertaining to Astros conducted by Major League Baseball, and Rockets, conducted by National Basketball Association. However, after failing to find a prospective buyer, the US bankruptcy judge opted to put the network into a holistic Chapter 11 reorganization, slated to happen in February.
The Beijing Theme Park
Meanwhile, CMCSA announced that it is all set to open a $3.3 billion park based in Beijing, after been granted the approval for this proposed 300 acre park, by the Chinese government. The Beijing Theme Park shall be co-owned by four key state owned companies.
Investors Should Buy Comcast Shares
Certainly, Comcast Corporation (NASDAQ:CMCSA) is a must-buy share, as it has positive investment measures and return on investments in near future. Despite having weak cash flow, CMCSA has shown notable equity returns and revenue growth.