.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:

Dear S.L.:

Comcast Corp. (CMCSK-$24.93) is one of the largest cable TV and Internet service providers in the country, with anticipated revenues of more than $30 billion this year. There’s a paucity of information on Yahoo! Finance because Yahoo Inc. (YHOO-$23.30) is having enormous difficulty hiring high school graduates who can read and think.

YHOO’s investment site is seriously hamstrung by a lack of current data. I stopped using Yahoo’s site in 2006 when I learned that in order to cut costs it was scrimping on the quality and quantity of investment data and hiring “yahoos” to maintain its financial network. It’s common knowledge that YHOO has clearly fallen way behind Google in search technology and users, and the gap is growing wider. With 77 percent of its revenue coming from online advertising, YHOO’s profits could drop like a lead stone if the economy just skirts a recession.

Though YHOO remains the most popular destination on the Web, management’s new hires lack imagination, intelligence, resourcefulness and incentive. Product delays, a bad advertising platform, ineffective management and poor earnings have disappointed advertisers and shareholders.

Earnings in 2006 were 52 cents a share, and the suits on the street believe YHOO should earn 55 cents this year. The reason is simple: lousy management. YHOO’s Chief Executive Officer and President Terry Semel has a good media background, but lacks the technical expertise to manage YHOO in an industry where technology and innovation are vital.

Meanwhile, there’s a rumor that YHOO, which has barrels, bushels, bundles, baskets and boxes of cash, may be looking for a suitor. If a suitable one surfaces soon, YHOO ain’t worth more than $34 to $36 a share.

CMCSK’s revenues in 1999, when I told you not to buy the stock, were $6 billion, the stock was trading at a split-adjusted $34 a share, and per-share earnings were 21 cents. Today, your 100 shares (after two splits) are 300 shares, revenues should be $30 billion, earnings may come in at 80 cents per share and the stock trades at $25. Frankly, you’re out of pocket $2,500 plus potential interest that would have been earned during the past seven years. Not good, that!

Last year was CMCSK’s best year, and this year is expected to be even better as net profit margins increase to 8.1 percent. The suits expect 2008 to be another record year, with expected revenues of $34 billion, expected earnings of $1.05 per share and expected net profit margins of 9.2 percent. Management is on a roll.

CMCSK is aggressively marketing its services, and the public is buying because management is giving them what it wants at a good price with superb service. The company has an excellent balance sheet, a $13.50 book value, and the Street expects continued years of double-digit earnings growth. Though I couldn’t recommend CMCSK seven years ago, I will recommend it now (don’t sell your 300 shares) and suggest that the stock could trade in the mid-$50s during the next two years.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net.© Copley News Service