Directv (NASDAQ:DTV)

CAPS Rating: 3 out of 5

A Provider of digital television entertainment in the U.S. & Latin America. The Company's two business segments, DIRECTV U.S. & DIRECTV Latin America are engaged in acquiring, promoting, selling and distributing digital entertainment programming.

Recs

1
Player Avatar jmhunnel (< 20) Submitted: 4/25/2010 3:23:42 PM : Underperform Start Price: $36.65 DTV Score: -71.16

DTV is trading at over 20 times their highest earnings. Even if they win the HD battle, by the time their earnings grow enough to justify the current price, we'll be getting our TV some other way (cell phones, Google app, whatever).

Member Avatar JustHanginOut (56.71) Submitted: 5/18/2010 2:36:50 PM
Recs: 0

Even worse, we're ALREADY getting our TV in other ways. A large and growing segment of the population is increasingly getting their entertainment from companies like Netflix and an even faster growing portion of these people use the streaming service as a cheap alternative to subscription television. Betting on a cable or dish company is kind of like betting on a telephone maker back when cell phones first started becoming popular. If the valuation looked cheap it would be a different story but the valuation here is pretty lofty too.

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