NEW DIRECTIONAL CALL PLAYS
AMC Networks Inc. - AMCX - close: 86.27 change: +0.66
Stop Loss: 83.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 573 thousand
Entry on July -- at $---.--
Listed on July 16, 2015
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: Yes, see below
AMC Networks is probably best known for hit TV shows like "Breaking Bad", "The Walking Dead", and "Mad Men". Their "Breaking Bad" and "Mad Men" series are over but AMCX is still knocking it out of the park with its content. Lately Wall Street lows content makers. Earlier this year Piper Jaffray describes AMCX as "one of the best content plays in the media space". AMCX solidified its position as one of the best studios by winning
28 Emmy award nominations for the 67th Annual Primetime Emmy Awards.
AMCX is in the services sector. According to the company
"Dedicated to producing quality programming and content for more than 30 years, AMC Networks Inc. owns and operates several of the most popular and award-winning brands in cable television. AMC, IFC, SundanceTV, WE tv, and IFC Films produce and deliver distinctive, compelling and culturally relevant content that engages audiences across multiple platforms. The company also operates BBC America through a joint venture with BBC Worldwide. In addition, the company operates AMC Networks International, its global division."
Earnings have improved in the last few quarters. Looking at the last three quarters AMCX has beaten Wall Street estimates on both the top and bottom line. The last two quarters have beaten estimates by more than 10%.
On November 6th, 2014 AMCX said their Q3 revenues were up +31%. On February 26th they announced their Q4 results with revenues up +40%.
AMCX reported their Q1 results on May 4th. Analysts were expecting a profit of $1.44 per share on revenues of $654 million. The company delivered earnings of $1.66 per share, which is a +69% improvement from a year ago. Revenues were up +27.5% to $668.6 million, another beat.
After seven years AMCX aired their final "Mad Men" episode in May. While Mad Men got a lot of press their Walking Dead franchise is significantly larger. The Walking Dead is actually the most watched show on television. It's bigger than Sunday Night Football. Now the company is about to launch a Walking Dead spin-off called "Fear the Walking Dead". Plus they have seen early success with "Better Call Saul", which is a spin-off from its "Breaking Bad" series.
Technically shares have been building a bullish pattern of higher lows and higher highs. Shares spent a couple of weeks consolidating sideways in the $81-84 zone but broke out higher on July 13th. The point & figure chart is bullish and forecasting at $100.00 target. We want to hop on board if this rally continues. Tonight we're suggesting a trigger to buy calls at $86.55.
Trigger @ $86.55
- Suggested Positions -
Buy the AUG $90 CALL (AMCX150821C90) current ask $1.50
option price is a current quote and not a suggested entry price.
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.
Option Format: symbol-year-month-day-call-strike