Direct TV (DTV) is ahead of the game

Subscribers are leaving their wallet with El Segundo-based Direct TV DIRECTV Group, Inc. (Public, NASDAQ:DTV) thanks to their complete domination of the HD channel lineup, which now stands at 95 - more than any other provider.

We’re going through a recession right now in the United States, and rather than spending $20 to drive to the movies, another $20 for tickets and $15 for a Soda and some popcorn, most consumers are opting to stay home watching movies in High Def – and paying a comparable price for their monthly Direct TV bill as one trip to the movies.

Back in May, DTV raised $2.5 Billion to for a $3 Billion share buyback. Now, going that far into debt just to buyback shares is a little on the crazy side. But their strong performance and balance sheet has allowed them to do what a lot of companies can’t right now – borrow $2.5 billion dollars.

Direct TV is up 12% in the last 52 weeks.

No company is perfect though – Ingrid Chung over at Goldman Sachs recently downgraded the stock, citing that the DISH network and other cable companies are closing the gap on the HD channel lineup. Another factor includes the transfer of exclusive bundling with AT&T (T) in the old BellSouth territory from DTV to DISH.

Always do your own due diligence, but if you’re looking to invest in a cable company, I believe DTV is at the top of the list.

Disclaimer: The author has no shares of the securities mentioned in this article

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.