To say that times have been testing for shareholders of Ten Network Holdings Ltd (ASX: TEN) in recent years would be the understatement of the year. Not only has it dropped a staggering 81% since early 2010, it has also fallen 92% since the beginning of 2005.
Although its shares are now sitting around an all-time low of just 28.2c a share, the arguments against the company are too strong to ignore. Here are three reasons you should not buy Ten Network Holdings:
- There is no doubt that many investors have the company on their watchlist as a potential turnaround. Before you make that mistake, remember Warren Buffett’s wise advice that “turnarounds seldom turn.”
- Australia is not large enough to support three commercial free-to-air networks. Seven West Media Ltd (ASX: SWM) and Nine Entertainment Co Holdings Ltd (ASX: NEC) are both more dominant players in the industry.
- Ten Network Holdings’ ratings have been falling rapidly, largely due to its lack of tier one sporting events which can be used to promote new shows.
A better bet than Ten Network
It is very difficult to see how Ten Network Holdings can recover from the position it now finds itself in.