3 reasons you should tune out from Ten Network Holdings Ltd

The stock is down an incredible 92% in the last 9 years.

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Ten Network Holdings

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:

  1. 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.”
  2. 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.
  3. 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.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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