Stockchase Opinions

Barry Schwartz DirectTV Group DTV-Q PAST TOP PICK Dec 01, 2014

(A Top Pick Nov 28/13. Up 32.7%.) Being taken over by AT&T (T-N), which made an offer of $95 a share. There is a 12 month regulatory closing and there is some risk that the deal could not close. He is holding on.

$87.730

Stock price when the opinion was issued

Telecommunications
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TOP PICK
Under invested assets. The previous owner, GM, liked to take out the dividends, but didn't put enough back in. New owners are willing to invest for the future. Cheap. Aggressively rolling out digital recorders. Just acquired Pegasus Communications.
DON'T BUY
Growing its subscriber base at a pretty decent clip. Going through a transformation of ownership. Would prefer a cable company, which would have more avenues such as Internet, video on demand, etc.
BUY
Wonderful franchise. Pretty much finished the expensive job of launching satellites. Cash flow should be good from now on. Thinks it will potentially be taken over.
TOP PICK
Large satellite TV business. US and growing Latin American subscribers. 11 times earnings, very shareholder friendly, buying back 20% of outstanding shares. Thinks it will be a very stable business despite Internet TV.
PAST TOP PICK
(Top Pick June 10/11, Down 0.68%) Growth will continue as satellite TV grows in South America. Thinks it is a good stable business.
TOP PICK

This company sells satellite Pay-TV in the US. 20 million subscribers. In Latin America and have 17 million subscribers. Penetration rate of Pay-TV in Latin America is about 25%-30% versus 90%-95% in North America. At some point in time, the penetration rate is going to continue to increase and get to North American levels. They don’t have to do anything with infrastructure. Very low capital intensive business. Buying back stock and have shrunk the float 40% over the last 3 years.

PAST TOP PICK

(A Top Pick Nov 28/13. Up 26.62%.) Being acquired by AT&T (T-N)