DTV is subject to massive short interest following the rumors about buyout possibility by VZ.

http://www.reuters.com/article/marketsNe...


Question: who is shorting?

Possible answer: same thouse who spread the buyout rumors, and probably same who issued price upgrades.

Notice that at current price of ~ $27/share DTV has totally unreasonable PE of >22. Compare with T and VZ of 12, and some high fliers as MSFT of 15 (!).

This tells that present price of $26 - 27 is unsustainable; even with hefty PE of 15 the price should be ~ $18.5/share.

The recent run-up is no doubt based on buyout rumors by VZ spread earlier, but this is unlikely to materialize.

The recent exit of Chase Carey to NWS does not help either. Carey has been the guiding light at DTV since it went public; his business connections and ability will be sorely missed.

At the end of the day, one should invest based on logic, not rumors. Recall all those who bought into DISH at $50s last year.