2-Star Stocks Poised to Plunge: AMC Networks?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cable television brands operator AMC Networks (Nasdaq: AMCX  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at AMC's business and see what CAPS investors are saying about the stock right now.

AMC facts

Headquarters (founded) New York (1980)
Market Cap $3.1 billion
Industry Cable and satellite
Trailing-12-Month Revenue $1.2 billion
Management CEO Joshua Sapan (since 2011)
CFO Sean Sullivan (since 2011)
Trailing-12-Month Return on Capital 19.2%
Cash/Debt $224.2 million / $2.3 billion
Competitors A&E Television Networks
Home Box Office
Turner Broadcasting System

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 22% of the 23 members who have rated AMC believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, TMFJLo, succinctly summed up the bear case for our community:

$2.2B of debt and short-term cost-cutting make [AMC's] future prospects look shaky at best. A few big hits will continue to temporarily boost sales, but mismanagement will push this company into the ground. When I'd change my opinion: massive shifts in management control, starting with several new board members. AMC also needs to be constantly chipping away at that debt.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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