Down on discovery: analyst: company's cash-flow results are misleading.

On the surface, Discovery Holding Co.'s third-quarter results appeared to be another period of stellar operating growth. According to one analyst, though, looks can be deceiving. Discovery Holding was spun off by Liberty Media Corp. in July, and contains Liberty's 50% stake in Discovery Communications Inc.

and its 100% interest in Ascent Media Group. According to its third-quarter financial statement, released Nov. 9, DCI reported a 6% increase in operating cash flow to $171 million, with revenue ahead 15% to $639 million. Strong numbers, especially in a weak advertising ...

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