Comcast Corporation (CMCSA) was reported to have dropped its bid for the majority of assets of Twenty-First Century Fox Inc, thus, leaving Walt Disney Co in pole position for the deal estimated at more than $40 billion.
Comcast shares closed higher for a third consecutive trading session on Tuesday. It has also been the sharpest daily surge since December 4th. The stock went up 2.78% ($1.07) to $39.51, after touching an intraday high at $40.10, or a price level not seen since December 5th ($40.39).
In the week ended on December 10th the shares of the media giant lost 1.25% of their market value compared to a week ago, which marked the third drop out of five weeks.
However, due to the recent string of gains, the stock has extended its advance to 5.25% so far during the current month, following a 4.19% surge in November. The latter has been the best monthly performance since May.
For the entire past year, the shares of the NASDAQ-listed company rose 22.36%. The stock has gained another 14.46% so far in 2017.
According to a statement by Comcast earlier this week, its negotiations with Fox have come to an end.
“When a set of assets like Fox’s becomes available, it is our responsibility to evaluate if there is a strategic fit that could benefit our company and our shareholders”, the company said in a statement.
“That is what we tried to do and we are no longer engaged in the review of those assets. We never got the level of engagement needed to make a definitive offer.”
The assets in question include Fox’s FX and National Geographic cable channels, the Star network in India, Foxs movie studio as well as its stake in pay-TV provider Sky Plc.
According to Reuters, citing a source with knowledge of the situation, the Murdoch family controlling Fox favors a deal with Walt Disney Co, as it would rather receive payment in Disney stock than in Comcast stock. Additionally, a deal with Walt Disney is expected to be cleared more easily by antitrust regulators in the United States.
According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $44.00, with a high estimate of $51.00 and a low estimate of $38.00. The median estimate is an 11.36% surge compared to the closing price of $39.51 on December 12th.
The same media also reported that 28 out of 34 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 2 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the Comcast stock are presented as follows:
R1 – $39.61
R2 – $39.71
R3 (Range Resistance – Sell) – $39.81
R4 (Long Breakout) – $40.12
R5 (Breakout Target 1) – $40.47
R6 (Breakout Target 2) – $40.62
S1 – $39.41
S2 – $39.31
S3 (Range Support – Buy) – $39.21
S4 (Short Breakout) – $38.91
S5 (Breakout Target 1) – $38.55
S6 (Breakout Target 2) – $38.40
By using the traditional method of calculation, the weekly levels of importance for Comcast Corporation (CMCSA) are presented as follows:
Central Pivot Point – $38.81
R1 – $39.87
R2 – $41.79
R3 – $42.85
R4 – $43.91
S1 – $36.89
S2 – $35.83
S3 – $33.91
S4 – $31.99
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