Trade-Ideas LLC identified

AMC Networks Inc A

(

AMCX

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified AMC Networks Inc A as such a stock due to the following factors:

  • AMCX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.5 million.
  • AMCX has traded 1.1 million shares today.
  • AMCX traded in a range 222.7% of the normal price range with a price range of $6.63.
  • AMCX traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on AMCX:

AMC Networks Inc. owns and operates various cable television's brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, National Networks, and International and Other. AMCX has a PE ratio of 14. Currently there are 6 analysts that rate AMC Networks Inc A a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for AMC Networks Inc A has been 772,600 shares per day over the past 30 days. AMC Networks Inc A has a market cap of $5.0 billion and is part of the services sector and media industry. The stock has a beta of 1.06 and a short float of 14.9% with 6.49 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AMC Networks Inc A as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 21.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 36.9% when compared to the same quarter one year prior, rising from $53.16 million to $72.77 million.
  • Net operating cash flow has increased to $110.73 million or 31.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.51%.
  • The gross profit margin for AMC NETWORKS INC is rather high; currently it is at 53.64%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.51% trails the industry average.
  • AMC NETWORKS INC has improved earnings per share by 33.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMC NETWORKS INC reported lower earnings of $3.62 versus $4.01 in the prior year. This year, the market expects an improvement in earnings ($4.98 versus $3.62).

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