2-Star Stocks Poised to Plunge: Cablevision Systems?

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cable company Cablevision Systems (NYS: CVC) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Cablevision's business and see what CAPS investors are saying about the stock right now.

Cablevision facts

Headquarters (Founded)

Bethpage, N.Y. (1973)

Market Cap

$3.3 billion

Industry

Cable and satellite

Trailing-12-Month Revenue

$6.7 billion

Management

CEO James Dolan
CFO Gregg Seibert

Return on Capital (Average, Past 3 Years)

12.8%

Cash/Debt

$493.5 million / $11.2 billion

Dividend Yield

4.8%

Competitors

Comcast
DirecTV
Verizon


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 33% of the 178 members who have rated Cablevision believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, Allstar13913, succinctly summed up the bear case for our community:

A non-viable cable company that is losing the NYC customer battle to Verizon. Margins will continue to decrease as costs soar and additional infrastructure is needed. In addition, the best assets, namely Madison Square Garden and AMC networks have already been spun off into their own companies.

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At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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