Sirius XM (NASDAQ:SIRI) continues its roller coaster performance, climbing 9 percent today after plummeting 6 percent Tuesday, when earnings fell short of analysts' expectations for the fourth quarter.
Trading volume has soared today, jumping to over 122 million shares exchanged, second to only Citigroup on the day.
Sirius CEO Mel Karmazin said, "With continuing improvements in auto sales, and self-pay churn and conversion rates for 2011 similar to our strong performance in 2010, we expect to grow our net new subscribers by another 1.4 million in 2011, continuing our track record of solid subscriber growth."
Analysts have circled the wagons around Sirius, helping to prop up the stock and give it a boost today.
One input that could help Sirius for 2011 is their projected auto sales, which was 12.5 million. Some analysts see auto sales reaching 13 million, which would result in higher-than-expected satellite radio subscriptions for the company.
Sirius was trading at $1.84, gaining $0.15, or 8.90 percent, as of 2:12 PM EST.
Showing posts with label Satellite Radio. Show all posts
Showing posts with label Satellite Radio. Show all posts
Wednesday, February 16, 2011
Thursday, December 23, 2010
Sirius XM (Nasdaq:SIRI) Surges on Expected Car Sales
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.
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.
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