Well-known value investor Mario Gabelli's portfolio manager Chris Marangi shares Gamco's views on cable stocks. He discusses what is happening in the cable market and what is his outlook for cable stocks. He discusses if cord cutting is a real phenomenon and the future of the cable industry.
-- Cutting cord story is not true.
-- Number of cable subscribers grew last year, though marginally, and rates went up as well, producing revenue growth.
-- Broadband is the story; everyone needs a fast connection and 75% of the country has these broadband pipes operated by these cable companies.
-- Rates going up, so pricing power is there.
-- Even if a cable company loses cable connections it will gain broadband connections, and will be a winner in the long run.
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