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

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

http://www.stockcall.com/analysis

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

http://www.StockCall.com/DTV020513.pdf

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

http://www.StockCall.com/CMCSA020513.pdf

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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Copyright 2013 PR Newswire

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