DOJ Approves Merger: A buy signal for Sirius/XM?

Posted March 25, 2008

“Few analysts know with any certainty whether that sharp jump will continue… whether now is a time to jump in with both feet… or whether the surge will cool on the heels of valuations.” — Mike Caggeso

by Mike Caggeso, Money Morning

Baltimore – (TFN): Minutes after the Dept. of Justice approved Sirius Satellite Radio Inc.’s (SIRI: NASDAQ) merger with XM Satellite Radio Holdings Inc. (XMSR:NASDAQ), each company’s shares soared by double-digits…

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Yet few analysts know with any certainty whether that sharp jump will continue… whether now is a time to jump in with both feet… or whether the surge will cool on the heels of valuations soon to be posted by analysts, who no doubt are bleary-eyed and caffeine-drunk from crunching the numbers through the night.

So the question is, should you buy?

The answer is not an easy one. It depends on three factors. Read on to learn whether you should buy into Sirius and XM or leave the merger alone.

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