[devilincarnate]

Originally Posted by denphone

And have they got the money.

This is a good read?

CBS and Virgin Media (VMED), two of our larger holdings thanks to excellent stock price performance, reported earnings a few weeks ago. Both companies reported good results supporting the higher stock prices and setting the stage for future gains.

Entering the report, I was a little worried about VMED due to strict austerity measures in the UK economy, including higher valued added taxes. At the VMED analyst meeting we attended a few months ago, the company warned that early 2011 would be challenging. The quarter has hardly a blockbuster, but mid-single digit revenue and EBITDA growth built on inline to better-than-expected subscriber growth and ARPU was an excellent performance in a tough environment.

Taking the quarter as a sign that austerity is not crimping growth, VMED's 2011 outlook looks better than feared. The company is coping well with a tough environment, probably a sign that that its best-in-the-UK broadband network remains a competitive advantage that the focused management team is exploiting. Free cash flow continues to rise rapidly and the board is exercising an aggressive share buyback program, including purchases at the current prices at the 52-week high.

VMED is near my low- to mid-$30s price target, but I think the bias is higher on the assumption that 2012 economic growth in the UK improves. The share buyback, free cash flow, and excellent management execution provide downside protection that makes waiting for comparisons to ease the best course of action.

http://seekingalpha.com/article/2713...?source=nasdaq