The planned merger of Liberty Entertainment into DirecTV Group (DTV) has been completed. This results in DTV being back up to 9% of my portfolio, even after selling half of my original DTV stake when it doubled in price. For now I'm holding, believing John Malone will engineer something further rewarding shareholders. A sale to AT&T or another company is a definite possibility.
The merger left me with three Liberty Media tracking stocks, which when added together didn't equal a full portfolio position. I think Liberty Media Corporation - Interactive has possibilities, and could revisit it at some point. Still, I decided to dump all the tracking stocks, adding to my cash. It earns nothing, yet being liquid seems prudent with not much cheap out there. And with complacency reigning among investors right now.
As has been reported, the broad stock market is priced for 5% GDP growth. Either companies will grow to catch up with stock prices, or stock prices will "catch down" to the state of companies. My cash balance is the residual of not seeing a lot of bargain stocks right now.