Saturday, September 17, 2011

"The continuing search for growth and fundamentals leads me to the doorsteps of Direc TV Group (symbol DTV)"

Dow Jones Industrial Average 11509.09 (Up) Week Ending 09-16-2011

Sorry I missed you last week. I was down at the Jersey Shore, at Charlies on Shore Road in Somers Point NJ,  eating  LISA's PASTA & CLAMS , chopped Clams & Tender Littlenecks sautéed in White Wine Garlic (or Marinara Sauce) over Capellini (Angel Hair).  Sometimes you just need to kick back and do that. Besides that, the market was at kind of Mexican standoff anyway. So this week I am back in sync with a very smart growth pick.

Direc TV Group ( Symbol DTV, $43.70) is up around 6% for the year, but was at a high price of $53.40 just back on July 13th this year. I see it going to a target price of $60.00, which would be a 37% gain from the current $43.70 price. The 2011 earnings per share are projected at $3.37 and the 2012 earnings are projecting at $4.23 per share. 5 year earnings growth has been running at 19.73% and is projected at 20.66% going forward from here.

The total return on the stock for the last 3 years is 66.9%. I'll take a 22% increase in the value of my stock per year anytime. The current PE is 13.56 , very reasonable. Subscriber growth slowed a little bit in August,
but going forward they should be just fine. Their $29.95 package offering with the addition of the NFL package is a very compelling offer for the 4th quarter and should take market share from Comcast and Verizon. I have Comcast and they are charging me $63.00 plus a month just for basic TV cable.??

So let's wrap it up with Direc TV as a winner for you. Mitch would say, "I wanted to order Direc TV, but the satellite dish would not fit in my suitcase when I traveled".


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