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6 pts

Opinion on  Sirius Satellite Radio Inc (SIRI)     Sector: Services  >  Industry: Broadcasting & Cable TV
Bullish on SIRI ...

Jul 30, 2008 01:50 PM GMT
Dontpanic
Return Risk
+3.35% MID
Associate

Nowhere to go but up now. This is one of those products that once you've tried you can't live without. The combined companies should have great financial synergy. Now they both can move past a brutal 17 month approval process and ramp up marketing, release new subscription packages with 3 year capped rates, and begin a new aggressive push at marketshare growth. Whether oil goes up and people buy new, fuel efficient cars, or oil goes down and people confident purchase legacy fuel autos, most will be getting the "free three month trial" that has hooked so many of us in the past. These guys offer a fantastic service and should be able to kill terrestrial and internet radio for at least a couple of years.


SIRI:  This call was made on 07/30/08 @ $1.7
Rating:   Positive   $1.7 (07/30/08)
Gain/Loss:   +90.59% in 1784 days


Comments (9)

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skaates2000   N/A     1 point   commented 1784 days ago reply

IM BETING ON THIS ONE WATCH IT GO SKY HIGH OR GET ON THE BAND WAGON.

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balabanovj   N/A     1 point   commented 1770 days ago reply

The financial synergies are definately positive, but they need to improve the bottom line by at least 1.2B to be profitable. 400m in synergies takes care of part of that, but the rest must come from an expanded subscriber base, new products, and advertising revenue. I just don't see SIRI becoming profitable in under 3 years and in the meantime, they've going to have to float more bonds, likely in the form of CB's, and very likely direct additional share offerings. In the end, the float will be 5B+, therefor the current valuation appears to be justified, since for years, even after they turn profitable, we're looking at earnings of pennies/shr. Sorry, I'm not biting, except for maybe an in/out trade. JB

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osubuckeye previously rated SIRI
Positive +0.00% Bullish on SIRI ...
07/30/2008
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