Mediacom picks up cable systems

Mediacom Communications announced after the bell Tuesday that it will shell out $34 million to buy cable television systems serving 14,000 customers in Alabama from a subsidiary of AT&T Broadband.

Mediacom (Nasdaq: MCCC) shares closed unchanged at $17.75 ahead of the news.

Company officials said these new systems will bring its total subscriber base to more than 1.2 million homes in 22 states.

AT&T (NYSE: T) shares closed up 50 cents to $22.44.

In its latest quarter, Mediacom posted a loss of $23 million, or 26 cents a share, on sales of $84.5 million.

First Call Corp. consensus expects it to lose $1.55 a share in the fiscal year.

The stock peaked at $21 in March before slipping to a 52-week low of $7 in May.

All eight analysts following the stock rate it either a "buy" or "strong buy."