Comcast Concern
If I could, I would take this opportunity to sell another 500 of my 4,500 shares of Comcast (CMCSA) here with the stock around $34. Comcast is 18% above my cost basis, and as today's action shows, the announcement with TiVo (TIVO) this morning means a lot more to TiVo than it does to Comcast, which already offered its own digital video recording service. Also, any deal to purchase Adelphia would be likely include a portion of Comcast shares, and the dilution could knock the stock down in the near term.
P.S. Cabela's (CAB) just announced that it is in negotiations to build a new store in Reno, Nevada, for a grand opening in late 2006. This gives the retailer eight potential locations in the pipeline, including four scheduled to open their doors in 2005, compared with just 10 existing locations. I believe this remains one of the better growth stories in retail, and would take my stake up to 10,000 shares if Cabela's fell below $20 in the near term.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long Comcast and Cabela's.
Send email to james.cramer@thestreet.com.