DirecTV's Run Looks Over

"The more that DirecTV is focused on cash flow instead of subscriber growth, the more share of the new subscriber market that cable operators will be able to grab," says Thomas Eagan, analyst with Oppenheimer & Co.

And while taking on debt may hold short-term appeal for DirecTV shareholders, analysts say that at 18 times Wall Street's earnings estimates through 2007, DirecTV's share price probably already has those benefits priced in at this point. In the long term, more leverage might spell trouble for the company.

"Murdoch brought a lot more to the table at DirecTV from a strategic perspective than Malone will, and if Malone levers this thing up, you'll be left with a much less dynamic entity," says Mitchell, who holds a neutral rating on the stock. "I'm inclined to say this stock has already had its run. The easy money has been made, and it probably has a bias to the downside at this point."