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These Stocks Are a Nightmare... for Short-Sellers

By Tim Beyers - Apr 5, 2013 at 5:30PM

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Short-sellers of these entertainment companies are wading into dangerous territory.

Pity the traders that short zombies. They're likely to get eaten alive, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with the Fool's Erin Miller.

And there are a growing number. Short interest in Netflix (NFLX 1.56%) still stands at around 15%, while AMC Networks (AMCX -3.04%) is now up to 1.6% of its shares sold short. This is what happens when you trade for a premium valuation.

Yet short-sellers of both names are wading into dangerous territory. AMC is rallying on the performance of its signature horror series, The Walking Dead, which attracted 12.4 million viewers on Sunday night. The show also once again won the prized 18-49 demographic.

Tim says the performance is reflective of a large and growing appetite among consumers for differentiated content that's far afield of network television, and he expects years of outsize growth for the companies that fund it -- AMC and Netflix, notably.

Get Tim's full take in the video, and then leave a comment to let us know whether you think the time is ripe to be shorting AMC, Netflix, and their premium entertainment peers.

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Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$186.35 (1.56%) $2.87
AMC Networks Inc. Stock Quote
AMC Networks Inc.
AMCX
$40.54 (-3.04%) $-1.27

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