Hot Media Stocks For 2015: DIRECTV(DTV)
DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.
Advisors' Opinion:- [By Geoff Gannon] or John Wiley and you are correct in that purchase - then the company is correct in devoting 100% of free cash flow to buybacks and 0% to dividends. There can be no question about this. The question only arises in situations where you would no longer be willing to put new money to work in the stock.
As an example, Berkshire Hathaway would be in favor of Coke using all of its free cash flow to buyback stock in 1989 because Berkshire was buying Coke then. Berkshire would not necessarily be in favor of Coke putting all its free cash flow into buybacks today because Berkshire has the opportunity to put new money to work in Coke at today's prices and instead prefers to buy Heinz, Wells Fargo, IBM, etc. The 1980s care is clear, Berkshire had to prefer buybacks because Berkshire was buying t! he stock itself. The 2013 situation is different. Berkshire is no longer a buyer of Coca-Cola. Berkshire is a holder of Coca-Cola.
A lot of people overlook this simple rule. If you a re a buyer of a stock, you ought rationally to be in favor of that company paying no dividend and using all that cash to buy back stock. There is no good argument against this. If you are a holder of the stock, the story is different. It's complex and it may sometimes be indeterminable whether you want a dividend or a buyback.
It depends a lot on your own return potential. Historically, I've been able to earn 15% a year in the stocks I bought. So, I am a bit biased in favor of dividends over buybacks at stocks I hold but am no longer buying. I figure I can make 15% a year on my own. So unless the company can make more than 12% to 13% (due to taxes), it isn't clear that a buyback is better for me. But, again, that's based on making 15% a year annualized since 1998-1999. The stock market performance since 1998-1999 has not been as good as my personal performance. So, it's a question of whether you believe your performance will or will not be better than the market, whet her your future perfo
- [By GuruFocus]
Warren Buffett (Trades, Portfolio) reduced to his holdings in General Motors Co by 25%. His sale prices were between $34.09 and $40.95, with an estimated average price of $36.89. The impact to his portfolio due to this sale was -0.4%. Warren Buffett (Trades, Portfolio) still held 30,000,000 shares as of 03/31/2014.
Reduced: Directv (DTV)Warren Buffett (Trades, Portfolio) reduced to his holdings in Directv by 5.48%. His sale prices were between $68.11 and $79.99, with an estimated average price of $73.11. The impact to his portfolio due to this sale was -0.13%. Warren Buffett (Trades, Portfolio) still held 34,514,700 shares as of 03/31/2014.
source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/hot-media! -stocks-f! or-2015-3.html
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