Stop Trading!

Return to Article

Jim Cramer's Stop Trading! Cable Stocks on Fire

TheStreet.com Staff

Cable stocks are on fire, Jim Cramer said Friday on CNBC's "Stop Trading!" segment.

Cramer said Comcast's (CMCSA) comments Thursday underline that valuations on its shares and Time Warner's (TWC) and Charter's (CHTR) are too low.

Cramer said "people are beginning to realize" that the "pending collapse" of Internet voice provider Vonage (VG) will only help the cable companies. Cramer said the triple play of video, phone and Internet service is giving the cablers "sticky customers." All this means multiples on subscribers could double from where they were five years ago, Cramer said, sending shares sharply higher.

Cramer also said he expects Rite Aid (RAD) to hit $10 from its recent $6 and change, as analysts will have to raise their estimates next month when the company completes its purchase of the Brooks and Eckerd chains from Jean Coutu of Canada.