Bottom-feeding for Cablevision stock

April 4, 2012, 1:00 PM UTC

FORTUNE — Consumers often hate their cable company. Sometimes investors do too. After disappointing earnings, the loss of a star COO, and fears of customers abandoning their subscriptions, shares of Cablevision (CVC), the New York-based cable operator, have fallen 19% over six months to trade near a two-year low. (Shares are down 61% over the past year, though that doesn’t count the value shareholders received when Cablevision spun off AMC Networks.(AMCX)) Some top investors see potential. Leon Cooperman’s Omega Advisors, Steve Cohen’s SAC Capital, and JAT Capital all snatched up shares in the latest quarter. Wall Street overreacted to company projections of increased spending and lower cash flow in 2012, argues Ben Mackovak of $240 million hedge fund Rivanna Capital. Shares now trade at 15 times estimated 12-month earnings, down from a five-year average of 17. Mackovak thinks the stock, which yields 4%, may rise from $14 to the low 20s.

This story is from the April 9, 2012 issue of Fortune.