CS First Boston downgraded Cablevision (CVC) to hold from buy.
On Thursday the cable operator posted a $0.59 Q2 loss on 2% higher consolidated revenue. Analyst Lara Warner says while Cablevision announced five of six initiatives that are expected to close its funding gap, Warner says a lack of specificity left her unable to confirm whether the company actually closed the gap.
She says the management's tone was concerning and begrudging, and says top executives remained vague on their plans for the company's two largest non-strategic assets: Northcoast PCS licenses and its DBS business.
Warner thinks management could've gone further to shore up investor confidence. She thinks Cablevision will stay in a holding pattern until it provides further visibility. She sees a $4.52 2002 loss, and a $5.76 2003 loss.