Out Fox The $treet

AT&T has questionable prospects for achieving the targeted DirecTV synergies. Even coming up short on the synergies still leaves the company on track for pro-forma EPS estimates of $3. The stock remains exceptionally cheap and offers a 5.8% dividend yield. Back on September 16, AT&T (NYSE: T ) CFO John Stephens spoke at the Goldman Sachs Communacopia Brokers Conference. The main crux of the conversation with the Goldman Sachs analyst was regarding the integration and synergy benefits of the DirecTV merger. Read the full article on Seeking Alpha. Disclosure: Long T. Please review the disclaimer page for more details. 

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 ...

Investors continue to ignore that massive buyback program undertaken by DirecTV (DTV) in favor of other cable and communications providers. In fact, this $31B market cap company used $1.1B to return capital to shareholder in the form of buybacks in Q4'11 alone. Now it has announced a new $6B buyback program that amounts to 20% of the outstanding stock. Investors are clearly enamored with dividends so much that they've clamored to cable companies and wireless providers that have higher dividend yields than DirecTV. Sure those yields are nice and far exceed treasuries, but why ignore the nearly 20% yield being offered by DirecTV? Read the full article on Seeking Alpha. Disclosure: Long DTV. Please review the disclaimer page for more details.