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Wysłany: Czw 3:59, 05 Wrz 2013 Temat postu: AMC Networks doesn't make killing in first day as |
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AMC Networks doesn't make killing in first day as public company
Looks like Wall Street had a similar reaction to AMC Networks Inc. first day like a public company as critics did towards the much-maligned season finale of AMC murder mystery "The Killing."
AMC Networks -- parent of cable channels AMC,[link widoczny dla zalogowanych], WE, IFC and Sundance -- closed its first day like a public company at $39.85 a share,[link widoczny dla zalogowanych], down 8.3% in the $43.50 price that shares were issued at Friday morning.
Cable programmers are usually considered hot commodities by Wall Street. However,[link widoczny dla zalogowanych], AMC Networks, that was spun off by New York-based cable operator Cablevision Systems Corp.,[link widoczny dla zalogowanych], has some warning flags,[link widoczny dla zalogowanych], according to Street analysts.
For starters,[link widoczny dla zalogowanych], unlike two other publicly owned programming companies -- Discovery Communications and Scripps Networks Interactive Inc. -- AMC Networks doesn make or own big stakes in a lot of the programming that it continues its channels. AMC biggest shows include "Mad Men" and "Breaking Bad,[link widoczny dla zalogowanych]," of which are from outside studios. That,[link widoczny dla zalogowanych], wrote Barclays Capital analyst Anthony DiClemente, "places the organization in a disadvantage" when negotiating carriage handles distributors.
Furthermore,[link widoczny dla zalogowanych], DiClemente thinks that AMC and WE,[link widoczny dla zalogowanych], both biggest channels from the company, are already getting money from distributors in license fees and that the near future revenue growth will be modest.
"Based on our analysis,[link widoczny dla zalogowanych], AMC and that we are 25% above market on their affiliate fee deals,[link widoczny dla zalogowanych], while networks like HGTV,[link widoczny dla zalogowanych], Food Network,[link widoczny dla zalogowanych], Investigation Discovery and Nickelodeon are significantly below market,[link widoczny dla zalogowanych]," he explained.
There is a school of thought that AMC Networks is a takeover target. The Dolan family,[link widoczny dla zalogowanych], which holds the majority of stock in Cablevision,[link widoczny dla zalogowanych], also offers the majority of voting shares in AMC Networks. While family members may be seeking to sell, their large stake should discount the stock price,[link widoczny dla zalogowanych], some analysts feel. Furthermore, the Dolans are notoriously tough negotiators and may be hard to read by Wall Street.
Few are down on AMC. While DiClemente has a target price of $32 per share,[link widoczny dla zalogowanych], BTIG analyst Rich Greenfield a study this week having a target price of $50 for AMC Networks. BTIG anticipates several potential suitors for that programmer,[link widoczny dla zalogowanych], including Comcast NBCUniversal and Time Warner. Obviously, those companies already own substantial cable programming holdings and could not feel a necessity to add four smaller networks.
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