Bullish or Bearish on Sirius Satellite Radio (SIRI)?

As The Rational Investor I have been a long time bull on Sirius Satellite Radio (SIRI). I still am and in a big way.

I started my coverage of SIRI when shares were trading for $2 per share and watched shares rise to $8 per share and then fall back again to $3 per share today. All along the way, I have had a $20 target on the stock. Although shares are 50% higher than were they were at the start, the prospects for SIRI have only become more solid. SIRI now has over 8 million subscribers and there is a prospective merger with XMSR, but the stock has not done anything to reflect those developments. Investors are losing their patience as they watch their shares lose value.

The question of the week is will their wait be rewarded? Is Sirius Satellite Radio a buy or a sell? Tell me what you think in your blogs. I want to hear from each and every one of you regarding this lightening rod of a stock.

Posted on February 29, 2008 12:26 PM | Permalink

Comments (3)

Rebecca Witwer

Jamie,
It sounds like you a real passion about this stock. I hope it performs well for you. Some stocks are diamonds and others are rocks. This stock is a rock to me especially on down days like today. This is a bad economic climate for many of the company's subscribers. Me thinks that many of these monthly paying customers will drop their subscriptions to put gas in the tank and food on the table.

Satellite Radio had a good franchise initially; now they have hooked up with Directv. Just turn on the cable box and beautiful jazz, and other types of melodies (Rock, Elevator, Oldies, Newer Releases, Seventies, Eighties, disco, etc) flow through the sound system.

Good luck holding this company; personally I'd put my dollars to work elsewhere.

Posted by Rebecca Witwer | March 1, 2008 12:54 AM

Posted on March 1, 2008 00:54

lwat1937

I've owned Sirius stock since 2003. Bought first 10,000 shares for $1.65. I bought the stock because I liked the product and in fact still do. I've added to my stock position over the years because of the above average revenue and earnings growth. Although the earnings are negative, they have been moving in the right direction for several years. Another positive for the company is the positive cash flow achieved in 2007. These are objective reasons not subjective for owning the stock. Also I am confident in the company management and leadership.

Posted by lwat1937 | March 7, 2008 12:12 PM

Posted on March 7, 2008 12:12

tpoponak

i'm aprhensive about the business model. can a company make money just selling subscriptions, with little to no advertising income? and pay the sterns, oprahs and pro sports of the world. i confess that i am not a subscriber, perhaps there is adverstising now?

Posted by tpoponak | March 7, 2008 7:14 PM

Posted on March 7, 2008 19:14

Bullish or Bearish on Sirius Satellite Radio (SIRI)?

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