It appears some in the financial media are attempting to make Sirius XM (Nasdaq:SIRI) has some type of sustainable business model, and with new car sales expected to increase in 2011, somehow that's taken as some type of consumer demand as they feverishly away buying a new car so they can get satellite radio.
While over the last year there has been trailing earnings, over the life of Sirius they've never been able to prove the business model they have is sustainable, and the increasing number of way you can access media makes the technology yesterday's story.
The low price of Sirius is what's causing the stir, as traders and speculators continue to look for a bit of news to emerge which will cause some major fluctuations in the share price of the stock in order to make a quick profit; whether the share price goes up and down.
And even if you look at "fundamentals," the company is still carrying far too much debt, and still overpaid for Howard Stern, the fading shock jock, who is also yesterday's news.
Stern took a pay cut, but the deal was still far too lucrative and costly.
In other words, Sirius can no longer be considered cool or edgy, and without that there's really no reason to get the service.
Increasing car sales or not, this is a company going nowhere.
You suck. U should shut up
ReplyDeleteHahaha. Nice article...NOT!
ReplyDeleteIn 10 years this stock will surpass both Apple and Exxon as being the largest market cap. Entertainment is in peoples blood. There is no substitute for satellite radio.
ReplyDelete1977 Pay for TV service, what are you crazy?
ReplyDeleteAnanonymous article ridiculously trashing Sirius- gee I wonder what the chances are that the aucthor shorted the stock...
ReplyDeleteIf the author wanted even an ounce of credibility he should at least learn how to write fool complete sentences. Just look at t he opening "attempting to make Sirius XM (Nasdaq:SIRI) has some type of sustainable business model"
What evidence does he offer that it is not sustainable? He claims they have too much debt and are not edgy enough. Right now it has free cash flow which means that it doesn't need to take out more debt and since its debt is not due for quite some time that means it will be able to pay some of that debt off overtime and easily be able to refinance what it has not paid back when it is finally due.
The reason people buy subscriptions is because of content and also because it is far clearer than any free radio station. That is why it keeps growing and will keep growing and even if it stops growing eventually and the numbers simply stay the same it will be making money which is what matters for its survivial.
hahahaha that is too funny! Yesterday's news hahaha! Watch and learn as this story unfolds over the next couple of years this really is a revolution...what a chump.
ReplyDeleteSIRI will go it's way the next two year. The goog results will pay the stock quotation. For me it is no question, 4$ are in that time real. perry3213, Germany
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