In October I wrote a post about Direct TV (DTV) and said “at $26 shares are fairly priced…should they dip to $20 again, you have a great buying opportunity”. Well, in Jan. 2008 they did just that and are up 35% since then.
After recent results, shares have even more upside. Back in October the jist of my post was that the scope of HD offerings from Direct TV vs cable would bring in scores of new customers. Since then, the company has dropped the price of the HD DVR it sells from $399 t $199 tempting even me to get it.
Then this week they announced they added 275,000 net U.S. subscribers, well above analyst expectations of about 180,000, and increased its domestic subscriber base by 5.2% to 17.1 million.
They also announced a $2.5 billion dollar share repurchase plan (8% of market cap).
There are other potential earnings drivers down the road such as a plan for video-on-demand and and internet over power line that are testing. Conveniences of programming your DVR by cell phone or computer also give customers a wide array of features.
Shares could be bought on the next dip and held for the long term..
Disclosure (“none” means no position):Customer only, None
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2 replies on “Direct TV (DTV) Surging”
Hi there. I would like to comment on your blog, which I by the way find very interesting. Telecommunication services offered by Direct TV are of poor quality at the present time. In the beginning, everything was perfect and now it is a real rip off. On this great site http://www.pissedconsumer.com where I wanted to post my complaint I found out that I am not alone in this trouble.
Hello, I find your blog very interesting. I see you are talking about Direct TV. From thes great site http://www.pissedconsumer.com I learned that the company specializes in HD and DVR satellite TV system installation and programming for all of the U.S. DirecTV is a direct broadcast satellite service company. As for the customers’ reviews which I also found on the site I should say they are negative and numerous.