AMC Networks Inc. (NASDAQ:AMCX)

CAPS Rating: 4 out of 5


Player Avatar TMFNato (98.63) Submitted: 8/6/2012 10:52:38 AM : Underperform Start Price: $43.66 AMCX Score: +5.39

It's run by a self-serving family that stuffs the board with relatives (all collecting paychecks for their directorship) and has an iron grip on 75% of the voting power. And the whole company seems to have been spun off only to unload a pile of debt from parent Cablevision onto the new company. AMC freely admits that it can't possibly repay that debt, which is practically a big, blinking sign to shareholders: WE WILL DILUTE YOU. Plus, its efforts to create new hit shows like Mad Men and The Walking Dead have thus far not borne fruit, and it's nickel-and-diming the hit shows it does have. Bad, bad moves from a bad, bad company.

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