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Pali Bullish on DirecTV

Of all the media stocks out there why does Pali Research consider DirecTV a favorite?

We asked Fast Money friend Rich Greenfield, the very same Pali analyst who put a buy rating on the stock and gave it a $32 price target.

Greenfield always offers a lot of data points to back up his case, but rather than sift through all of it -- following you'll find the 3 main points to his argument.

- DirecTV was able to add 761,000 subs while cable lost over a half million during the previous 2 quarters. That’s strong performance. And he says they accomplished such impressive results because, "DirecTV only does one thing, video and they simply do it better than rivals by putting the consumer first.”

- Consequently, he anticipates improved cash flow – which he thinks could be used to buy back stock.

- Finally he thinks it’s increasingly hard to imagine DirecTV remaining a stand-alone company. And Greenfield speculates the likely buyers could be AT&T (T) or Verizon (VZ).

As a result he expects this stock to climb about $10 – or approximately 50%.

To hear our entire interview with Rich Greenfield please watch the video.



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Trader disclosure: On June 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (TER); (SDS); (ABT);Terranova Owns (RIMM) & Short (RIMM) Calls; Terranova Is Short (RIG); Terranova Owns (BRCM) & Short (BRCM) Calls; Terranova Owns (MS) & Short (MS) Calls; Terranova Is Short (FCX); Terranova Owns (GENZ) & Short (GENZ) Calls; Terranova Owns (HES) & Short (HES) Calls; Terranova Is Short (XOM) Call Spread; Terranova Owns (DIS) Call Spread; Terranova Owns (X) & Short (X) Calls; Terranova Owns (JPM) & Short (JPM) Calls; Terranova Owns (BTU) & Short (BTU) Calls; Terranova Is Short August Gold Futures; Terranova Owns (POT) & Short (POT) Calls; Terranova Is Short Septmeber Oil Futures; Terranova Owns December Oil Futures; Terranova Owns August Nat Gas Futures; Terranova Owns (IBM) & Short (IBM) Calls; Terranova Is Short (OIH) & (OIH) Calls; Najarian Owns (BX) Call Spread; Najarian Owns (F) & Short (F) Calls; Najarian Owns (FCX) Calls & Put Spread; Najarian Owns (GE) Calls; Najarian Owns (INTC) Call Spread; Najarian Owns (MOS) Put Spread; Najarian Owns (PALM) Calls; Najarian Owns (WNR); Najarian Owns (JPM) & Short (JPM) Calls; Najarian Owns (RIMM) Call Spread; Najaria Owns (LEA) Calls; Kelly Owns (UUP), (TLT), (AN), (UGA), (AMZN), (BBY), (DSX), (LOW), (PAL); Kelly Is Short (FXS); Seymour Owns (AAPL), (BAC), (BX), (EEM), (FXI), (FCX), (FITB), (TTM); Seymour's Firm Owns (NOK)