This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dish Still Has Options on its Plate

Ergen needs to plot his next move fast, because I don't believe that Wall Street will continue to pay an expensive premium for Dish's stock.

The game is far from over, however. Ergen can still go after a mobile company such as T-Mobile (TMUS - Get Report), which recently acquired MetroPCS.

The thriving mobile broadband market is attractive for Ergen. He desperately wants Dish to build its capablity to offer high-speed Internet, video and voice services to its customers whether they're at home or on the go. T-Mobile does not bring the reach of Sprint, but I don't believe Ergen should ignore it as an option.

DirecTV is in the same boat - or in this case - same orbit. It also has to be concerned about the long-term state of the satellite industry - although the company has not been as aggressive as Dish in trying to alter its fate.

These two could even come together in a merger as a "last resort" type of a deal. There is precedent with Sirius XM (SIRI - Get Report) when both Sirius and XM operated as the two lone satellite radio companies prior to their merger in 2008. One or both would have been killed off without the merger. The combined company has become more valuable, even in the face of emerging threats like Pandora (P - Get Report).

I can only speculate about the value that a combined Dish and DirecTV would bring to shareholders, and I'm not convinced that this idea will ever be on the table. But it should be. Weirder things have happened.

So for now, while Dish has lost out to SoftBank for Sprint, Ergen has more pieces to play.

At the time of publication, the author was long Apple.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DTV $0.00 0.00%
CLWR $0.00 0.00%
AAPL $92.94 -0.73%
DISH $45.10 -2.00%
INTC $29.90 0.18%


Chart of I:DJI
DOW 17,691.94 +40.68 0.23%
S&P 500 2,055.03 +3.91 0.19%
NASDAQ 4,734.1640 +8.5250 0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs