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.


Player Avatar Bama99 (80.93) Submitted: 7/14/2011 3:16:48 PM : Outperform Start Price: $37.54 DTV Score: +48.51

It offers a unique product that consumers want. No other company can provide everything they do.

Yes, there are cable TV providers, but they don't have cable everywhere and most of it cannot deliver the same high quality level of programming. This is especially true in emerging markets like Latin America. Think soccer fans like watching the World Cup on old analog televisions? Nope, once they see a match in HD, they are spoiled and they want it in their home as well.

This is one reason DirecTV added 1.2 million new customers in Latin America in 2010. You want to own a piece of this growth.

DirecTV's operations in Central and South America are already providing over 15% of the company's operating earnings, and this year looks even better than last.

What about other satellite providers?

Two words...Exclusive content. Want the NFL Sunday Ticket? It's only available to DirecTV subscribers. Gonna catch the 4th season of Damages? DirecTV produced it and it's only available to their subscribers.

DirecTV is an innovator. Their shows have won six emmys and they hold hundreds of patents. With over 170 HD channels and 100% digital content, they have beaten the cable companies in customer satisfaction the last 9 years.

Shares are trading at a reasonable PE of 12.4 forward earnings and an aggressive buyback program could reduce outstanding share another 20% over the next 2 years.

It will be an epic win!

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