The Alpha Algorithm Doubles Down on the Cable Sector

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

After last week’s recommendation of cable giant Comcast Corp. (CMCSA), this week’s Alpha Algorithm selected yet another familiar name in the world of cable TV and Internet: Charter Communications Inc. (CHTR).

Founded in 1999 and headquartered in Stamford, Connecticut, Charter Communications Inc. (CHTR) is a leading broadband communications company and the fourth-largest cable operator in the United States. Charter provides a full range of advanced broadband services, including advanced Charter Spectrum TV video entertainment programming, Charter Spectrum Internet access and Charter Spectrum Voice.

Charter Communications Inc. (CHTR) versus the S&P 500 year to date

12 Top Investment Strategies Betting on Charter Communications Inc. (CHTR)

1. Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which historically has driven a significant part of companies’ risk and return.

2. Large-Cap Momentum

The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.

3. Pure Growth

The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.

4. Insider Sentiment

One of 100 equally weighted U.S.-listed large- and mid-cap stocks chosen based on trading in company stock by corporate insiders, price momentum and trailing 12-month volatility. Specifically, it looks at the increase in insider holdings.

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5. Large-Cap Alpha Growth

The company has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.

6. Broker’s Best

One of Raymond James’ selection of stocks expected to outperform the S&P 500 over either a six- or 12-month period.

7. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

8. Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

9. Goldman Sachs Hedge Fund Index

The stock is part of the Goldman Sachs Hedge Industry Index, which tracks an equal-weighted index of the 50 most-frequently held U.S. companies selected from the portfolios of hedge funds.

10. Billionaire Bet

The stock is one of 30 U.S. companies tracked in an equal-weighted index selected from the portfolios of 10 asset managers with a personal net worth of at least $1 billion.

11. Large-Cap Alpha Core

The stock is one of a tiered equal-weighted index of large-cap stocks selected from the S&P 500 expected to outperform the broader large-cap space based on an intricate methodology of ranking stocks according to their recent performance.

12.Value Line 100

It is one of the top 100 stocks in the universe of 1,700 stocks for which Value Line gives a #1 ranking in the Value Line Timeliness Ranking System, based on expected price performance over the following six to 12 months.

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Recommendation

Buy Charter Communications Inc. (CHTR) at market today and place your stop at $355.00.

I’m holding off on an options recommendation on this one for now.

Portfolio Update

You stopped out of Boeing (BA) yesterday at $234.30 for a 25.78% gain.

You were stopped out of The Priceline Group (PCLN) yesterday after the stock opened below its stop price. We netted a gain of 8.2%

Sell your position in United Continental Holdings (UAL) at a loss, as almost all Alpha Algorithm strategies have dumped the stock over the past week.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

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