- AMC Networks is quantitatively very cheap at 5x earnings.
- The key question: Can AMC Networks transition from TV channels to streaming services? If so, the earnings multiple will expand from being a value trap to a growth stock.
- Since overall revenue hasn't been dropping for years, it already seems like the transition is already working despite the company starting late.
- The investment has likely 70% downside or 250% upside before the story will be clear either way. This investment isn't suited for risk-averse investors.
For further details see:
AMC Networks - Binary Bet With Strong Upside, Inflation Play