With new competitors aggressively investing in content for streaming, and incumbent media companies combining to gain scale, AMC Networks' (AMCX) future is looking very uncertain to investors. The stock price has been in a steep multi-year decline despite stable financial results. With the cable/satellite bundle in decline, there is little appeal to investors for owning shares of a small media company.
However, the cable/satellite bundle still allows AMC to earn attractive returns on invested capital ((ROIC)) and enviable free cash flows. While seemingly a million articles have been written about the doom of