Today's Research on DirecTV and Comcast: Cable Companies Fight to Retain Subscribers

   Today's Research on DirecTV and Comcast: Cable Companies Fight to Retain

  PR Newswire

  LONDON, February 5, 2013

LONDON, February 5, 2013 /PRNewswire/ --

Cable TV segment is fraught with competition. The cable companies are not only
facing competition from each other, but are also battling with newer
competitors like video streaming services. While the biggest challenge for the
industry is to retain its subscriber-base, many of its players are planning to
diversify through acquisitions. DirecTV Inc. (NASDAQ: DTV) is looking to
expand itself in Latin markets, whereas Comcast Corp. (NASDAQ: CMCSA) is
ramping up its technological infrastructure to counter the competition.
StockCall analysts have recently posted technical reports on DirecTV and
Comcast. These free analyses are accessible upon signing up at

DirecTV Looks for Expansion in Latin America

DirectTV is currently facing stiff competition for its bid for GVT phone unit
in Brazil. While the company is interested in acquiring the unit to create
synergistic benefits, private equity firms Consortium consisting of Apex
Partners and KKR & Co. is all set to go for bank financing to clinch the deal.
However, Consortium is currently bidding at $6.8 billion, in contrast to the
asking price of 8 billion Euros. The acquisition is important for DirectTV as
it will help the company in augmenting its position in Latin America. However,
it is unlikely that the company would be willing to get into a bidding war for
GVT, which is owned by Vivendi SA. Sign up for the free technical analysis on
DirectTV at

DirectTV is also diversifying its portfolio as it financed FreeWheel, which
deals with web video ads. The company is scheduled to announce its fourth
quarter numbers on February 14 and it is likely to report a 7 percent
improvement in its revenue whereas its EPS is expected to increase by 11.8
percent. However, the cable company is facing deteriorating margins as its
gross margin declined 1.9 percent in the third quarter. DirectTV also added
100,000 new subscribers during the fourth quarter and thus performed better
than its peers, which are facing declining subscriber-base. DirectTV stock
grew 15 percent in the past 12 months and it is likely to continue the trend,
despite recent declines in the price.

Comcast Hits 52 Weeks High

Comcast Corporation recently hit a 52-week high. The company recently
collaborated with Intel to let its subscribers access live video without
hooking up additional hardware. The new deal will also make it easier to
stream on demand videos. With this step, the company is clearly moving towards
strengthening its on-demand video service. Comcast launched its streaming
subscription service in 2012 and it is likely to make significant contribution
to the company. However, it is unlikely to make up for the losses the company
is sustaining on Pay-TV front, where it has been consistently losing
subscribers. Register today and download for free our research on Comcast at

Comcast is also improving its infrastructure as it moves ahead with the use of
cloud technology to provide more interactive services to its subscribers.
While these steps are expected to increase its capex, in the long-run the
company will get to reap the benefits. The company is also growing through
acquisition as it recently paid $150 million to acquire stake in the set top
box manufacturer Arris Group. While the stock is a little pricey right now,
any pullback can provide comfortable entry point for investors. The stock is
current trading at P/E ratio of 17.44 in comparison to 12.57 Price Earnings
multiple sported by its rival DirecTV.

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