IB Net Payout Yields Model

The Buyout by AT&T Could Provide an Opportunity to Sell DirecTV at the Top

After holding a stock for a few years, no better exit opportunity exists than unloading the stock on a buyout with a nice premium. In the case of DirectTV Group (NASDAQ: DTV  ) , the company's stock has nearly doubled in the last couple of years and the gains are attracting competition. The purchase price of $95 by AT&T (NYSE: T  ) would provide an ideal exit point from an investment in the leading satellite television provider.

Exiting a position is always tricky, especially for one that has worked extremely well. The stock of DirectTV Group traded below $45 as recently as the middle of 2012. With the company's stock now worth nearly $42.5 billion with it trading around $85, it might have peaked... especially with competition heating up from AT&T (NYSE: T  ) and the recently proposed Comcast (NASDAQ: CMCSA  )   and Time Warner Cable (NYSE: TWC  ) merger.

Read the full article here.

Disclosure: Long DTV and T. Please review the disclaimer page for more details. 


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