Charter Communications (CHTR) is still one of the largest cable companies in the US in a period where cable should be doing fairly well, Charter’s common stock is worthless at this point. It may trade at $.77 but that is a cruel joke for anyone holding the shares.
Charter cannot take advantage of the increasing markets in voice-over-IP and video-on-demand because its debt service is so remarkably high. Charter has almost $21 billion in long-term debt and will be lucky to have $750 million in operating income this year. Some of Charter’s bonds may go into default or get very close after the next quarter’s results. At that point, the shares, which should be at zero, will actually trade there.
Douglas A. McIntyre
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.