Comcast: Buyback Comeback?

The nation's largest cable TV operator has announced a plan to repurchase $5 billion worth of its stock.

When all else fails, buy shares back. Having seen its shares fall 20% over the past year, Cable giant Comcast (symbol CMCSA) says it will do just that, announcing plans to buy back $5 billion worth of its stock. If Comcast follows through with the deal, it is "a major positive step" for the nation's largest cable TV operator, says Morgan Stanley analyst Richard Bilotti.

The buyback puts the Philadelphia-based company on equal footing with Time Warner and Viacom, which have launched repurchase programs of their own over the past two years. "We believe that the share repurchases should help Comcast narrow the gap between recent trading levels and its intrinsic value," says Bilotti.

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Contributing Editor, Kiplinger's Personal Finance