Sirius XM: The madness cannot continue
Today's Financial News - Posted March 20, 2009
Sirius XM Radio (NASDAQ:SIRI) investors are patting themselves on the back and thinking they have found a pot of gold. They had better think again. The company remains in a dire situation and speculators stand to lose a large portion of their investment.
By Andrew Snyder, TodaysFinancialnews.com
Baltimore – (TFN): The insanity continues. Sirius XM Radio (NASDAQ:SIRI) may have found a temporary solution to its debt woes, but its success is far from certain. Even so, investors are pumping money into the trendy stock as if the company has found a bottomless pit of gold.
Earlier this year, analysts and professional investors were bailing from this company, claiming it was too risky and was no longer affected by its own fundamentals. Rumors, press releases and investor gambling were driving the stock on a roller coaster ride. All the financial ratios and formulas could not come close to predicting the action of the speculative play.
Now that Sirius has finalized a life-saving agreement with Liberty Media and CEO, Mel Karmazin, is wiping the sweat of his brow, investors are claiming success as share price has soared over the past several weeks. It’s a temporary phenomenon.
Unless these gamblers are masters of buying at the bottom and selling at the top, do not expect to see much in the way of realized gains from this gamble. Sirius claims to have a golden future ahead of it, but I don’t buy it.
Subscribers are bailing, the market is tightening and its debt problems were merely pushed into the future. Even worse, thanks to Liberty’s $530 investment, shareholders own just a sliver of the company’s assets.
If you are sitting on profits thanks to the recent surge, congratulations, but stop patting yourself on the back and sell your shares now. Get the heck out before the next big drop. This madness cannot last forever.
*** But we’d love to update you on our assessment of Today’s Financial News today, tomorrow, and throughout the remaining months of this period of financial insanity… so please, make sure you sign up for our free e-letter below…
Next Article: The Secrets of Living in Luxury: Make sure you’re out of town when the bill comes
15 Responses to “Sirius XM: The madness cannot continue”
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down
March 20th, 2009 at 10:43 am
Leave the stock Alone..press is the one who ketp it down for long. It came put death bed,it knows how to get well run fast again….
March 20th, 2009 at 10:54 am
what kind of artical was that ? are you trying to bring the price down because you missed the buy ?
next time why don’t you back it up with facts , Liberty Media obviously see’s potential in (siri) to give them that money . do you think that maybe (siri) can make deals a lot easier with the 15 other media assests that Liberty Media has ?
March 20th, 2009 at 10:55 am
You’re a moron. Yes, it’s a volatile stock but that’s what makes it so appealing to those of us who are actually looking to stay long and make money on it. Shorters like you can’t fathom that it will spike and go up and go back down. Do you seriously think someone who sank $530 Million into the company is going to let it fail? Of course not. Yes there’s still looming financial problems but there’s revenue coming in and they’re bailing out the boat.
Secondly, where’s your link to the information you claim? Subscribers are bailing? Where did you get that information? Frankly, i haven’t seen much as far as “bailing” is concerned. Some people have left, and others have joined. The real issue is the car market. they’re not selling cars, so they’re not putting Sirius in them. There’s other alleys that they’ll go to and they’re starting to do so. Personally, i think you’ve been bashing this for the last couple of days because you’re shorting the stock. It went up and you missed the boat, deal with it. Spreading news and fear is just another way to keep it down and manipulate the market. Get a clue and do your research.
March 20th, 2009 at 10:56 am
The author of this article shorted SIRI and is loosing his shirt! Keep posting your “gloom & doom” articles to scare off the timid. That just allows us to buy more!
March 20th, 2009 at 11:07 am
WOW, I see the same type of articles posted on the google groups. Sounds like a shorter to me. LONG live SIRI!
March 20th, 2009 at 11:33 am
Subscibers leaving? Any actually FACTS to back that up.
Q4 was incredibly hard to subscriber based businesses.
Sirius gained 84K subscribers which sounds bad until you consider
Tivo lost subscribers in Q4-2008.
DirectTV lost subscribers in Q4-2008.
Dish lost subscribers in Q4-2008.
Netflix lost subscribers in Q4-2008.
This isn’t a news article it is a pro short fantasy.
Will the stock pull back? Sure. It is dead. Hardly, although the OP who likely lost 400%+ shorting the stock from $0.10 to $0.40 wishes it was.
March 20th, 2009 at 12:52 pm
Get with the times my frined. Sell your grammyphone on ebay and buy a Sirius radio and stop depriving yourself of valued entertainment. Like it or not, Sirius is here to stay. This article was nothing more than a typical media attempt to create drama…not news.
Reporters = Drama Queens
March 20th, 2009 at 1:15 pm
Well Andrew your powers of analysis are still at zero. You fly into the face of every analyst following the stock, you evidently have not read the 10Q or 10K, and don’t care to.
Subscriptions are UP, but slowing. Revenues are up and growing with new tiered pricing. Expenses are falling across the board due to the merger. Content is fantastic, and the Internet access of SiriusXM allows it to go global, and take advantage of WiFi and 3G. The Apple IPhone application is coming in a matter of weeks.
Other than the above, no progress. Oh yeah, and projected EBITDA is 300MM this year, and last quarter they had free cash flow of 24MM. Nothing but bad news I guess???
You seem to be stuck on the negative. Oh well.
March 20th, 2009 at 1:28 pm
SIRI is in a good shape to buy, and I think its future will be bright as the market grows. My recommendation is to buy SIRI and hold as long as you can afford. I did buy couple of thousands shares from SIRI when it was 0.23 cents and I am holding it because I think it is the time for traders to become investors with SIRI: to make a incredible profit, and help this company to develop. However, keep your smart attention on upcoming news too. Don’t let others to pool you and don’t be too much arrogant and greedy too.
March 20th, 2009 at 3:31 pm
Just a little note on our commenting policy:
To make the TFN experience informative for everyone, we like to see a certain level of maturity in the postings submitted. Personally, I’d be fine with the emotional equilibrium of a seventh-grader, other editorial members have slightly higher standards.
So just in case you don’t see your comment here, rather than crying “censorship”, just take a quiet step back and ponder if your comment was truly an informative enrichment of a fellow-investors’s time.
Thanks!
March 20th, 2009 at 4:13 pm
J. Christoph Amberger,
If you want more maturity from your readers, check out the content of this article. It offers nothing, provides no data, and the opinion proffered is therefore without merit. Also, you might want to consider the image you put next to the article, one I am not sure stimulates ‘mature’ commenting.
As for your closing remarks: “So just in case you don’t see your comment here, rather than crying “censorship”, just take a quiet step back and ponder if your comment was truly an informative enrichment of a fellow-investors’s time.” I would point you back to Andrew’s article and ask you to do the same.
Respectully submitted.
March 20th, 2009 at 10:40 pm
The Motley Fool – “Miller Tabak analyst David Joyce increased his near-term price target for shares of the satellite radio operator from $0.30 a share to $0.50 a share.
I believe it, and it is a great news for SIRI holders. I would like to predic on WWON too which is the next bull. My near-term price target for shares of WWON is $0.17 Good luck and keep your close attention on WWON too.
March 22nd, 2009 at 1:29 am
GO,GO,,,GO SIRI GO,,,GO,,,,,,,,SIRI BE GOOD ,,,!
March 22nd, 2009 at 8:42 am
APPARENTLY THIS ANALYST THINKS YOU ARE FULL OF YOU KNOW WHAT !!!
David Joyce, an analyst for Miller Tabak, issued a report Friday morning raising his price target on Sirius XM Radio (SIRI) from .30 cents to .50 cents in the short term, and also established a long term price target of $1.25. The analyst remains neutral on the stock, but even the short term target would represent over a 20% gain from current trading levels.
Joyce cites both positive and negative aspects on various metrics. On the down-side he notes lower subscriber net adds in 2009, and higher interest expense related to the Liberty Media Capital Group (LINTA) debt and preferred investments for 40% of SIRI equity that rescued the company from potential bankruptcy proceedings. On the upside, Joyce notes that Sirius XM Radio is delivering better than expected on costs of operations, noting that cost reductions are substantial.
May 20th, 2009 at 10:45 pm
The only question i have about Sirius Xm, is who will own it? It is not going anywhere with billions of dollars of equipment in the sky. Satalite is here to stay. Think about it.