Charter Communications (CHTR) is trading off as much as 7% today. That brings it down to $2.75. The stock was as high as $4.93 three weeks ago.
The company suffers from having too much debt in a market where debt is loathed. For Charter, that is $19 billion. In the most recent quarter, the cable operator had $200 million in operating income and $471 million in interest expense.
That should be frightening in any market, but in an environment like the current one, it’s poison.
Douglas A. McIntyre