Web Your Name®
SIRIUS gets SERIOUS.
SIRI is $ERIOU$.
Contact Us - Site Map - Home
What is SIRIUS or XM?
DISCLAIMER: We are NOT responsible for ANY losses RELATED to this stock. We are NOT financial advisors. This is merely our uneducated personal opinion.
Sirius XM Radio, Inc. (NASDAQ: SIRI) is the holding company for two Satellite Digital Audio Radio Services (SDARS) that operate in the United States and Canada. They are Sirius Satellite Radio and XM Satellite Radio. The two companies completed their merger in summer of 2008 when Sirius acquired XM. The merger provided Sirius more than 18 million subscribers.
"The proposed merger was controversial because in 1997, the FCC only granted two licenses and, in order to ensure a state of competition, stipulated that one of the holders would not be permitted to acquire control of the other. However, Goldman Sachs analyst Mark Wienkes identified MP3 players as significant competitors to satellite radio, specifically the announced music streaming capabilities of the 2nd generation iPhone." Source - Wikipedia
Sirius does not make much if any money or revenue from advertisers, but I do believe they have at least one infomercial channel or station, though I do not have Sirius Radio. Radio advertising is becoming a thing of the past just like television advertising. Companies who waste thousands and thousands of dollars on local radio advertising are making a huge mistake. The problem with television advertising and radio advertising is that their audience is NOT the best demographic for a business. With the Internet, you can specifically target the people who are LOOKING for your services or products. With radio advertising, you are forced to hope that someone listening needs your products or services, and then you have to hope that they will remember later when they are not in their vehicle anymore.
Sirius will most likely see a significant increase in their subscription memberships over the next 5-10 years.
Is Sirius stock a great investment?
Sirius is the ONLY satellite radio company now that it has merged with XM satellite radio, making purchasing Sirius stock seem like a no brainer. Without competition, the company is more than likely to continue to rebound and the stock is likely to continue to proceed on its upward trend. Basically Sirius has a monopoly on the satellite radio market. However, the were just sued in Federal Court regarding this matter.
Satellite radio is like digital video recorders (DVR) in the respect that you no longer have to listen to commercials. Though a tough economy satellite radio is not a necessity and I am sure that Sirius subscriber base has been impacted by it. The upside is once again that they have no direct competitor's and as the recession slows down, they will likely be able to continue to run their company profitably.
Sirius XM Radio has been developing a software application for use on the Apple iPhone and Apple iPod Touch devices that will allow its subscribers and users of those devices to listen to its programming.
Ford Motor Company (NYSE:F) hit an all time low in late 2008 of $1.01 per share. As of September 2009, Ford's stock was worth $7.43 and had hit a high of more than eight dollars per share, a 750% return on investment (ROI). This example shows that Sirius is completely capable of returning great numbers.
On a separate but similar note, people continue to get to our website by searching for ways to advertise on radio. Actually, someone called me the other day and wanted to know if I was interested in advertising on the radio. I love to toy with these salesman, or in this case saleswoman, if they are going to waste my time, I love to waste theirs too. I asked her how much would it cost to advertise on the radio. She told me it would cost between $2,000 and $4,000 a MONTH. Are you fucking kidding me? Why would anyone WASTE $25,000 to $50,000 on radio advertising for a year? I would give you a LIFETIME contract with my company for that price, and I GUARANTEE I would get you THOUSANDS of times the ROI than the radio advertising will. SERIOUSLY, how often have you bought something or paid for a service that you heard about on the radio? Why in the world would you waste your money on advertising on the radio? Don't people change the station when commercials come on to search for MUSIC? Sirius identified a market and a product that people want and is going to succeed in the long run. However, you won't if you keep wasting tens of thousands of dollars on advertising on the radio?
Sirius stock hit an all time low of five cents earlier on February 11, 2009. Since then, the stock has rebounded at hit a high of $0.78 in August of 2009. I noticed SIRIUS stock when it was @ $0.55 and have been keeping an eye on it. If only I had noticed it when it was at five cents or even ten cents!!! It is hard to say whether Sirius will be a good long term investment.
I will admit that I just sold off all of the 9,000 Sirius stock shares that I purchased. Sirius dipped today to $0.56 a share and the job loss report came out that 263,000 more people lost their jobs, setting a new 26 year low. While I still have faith in Sirius' product and ability, I believe that winter is going to bring much more job losses, and economic uncertainty. Therefore, I have changed my opinion that buying Sirius at this time is not necessarily a good idea. I plan to watch how Sirius handles this winter, and wait until the spring to purchase it again. With the job market showing no signs of relenting, I still think Sirius is a great buy, but not until the market has completely finished bottoming out.
The Wall Street Journal reported on Sirius on December 7, 2009. The article stated that, "A subscriber filed an antitrust lawsuit against Sirius XM Radio Inc. (SIRI) on Monday, alleging the merger of Sirius and XM last year created an abusive monopoly that has raised prices "above competitive levels." The subscriber alleges that, "The company's illegal and deceptive conduct has harmed competition and injured customhers in the (satellite digital audio radio service) market in the United States.".
The lawsuit, was filed in the U.S. District Court in Manhattan on December 7, 2009. The lawsuit claims Sirius XM committed to the Federal Communications Commission not to raise prices of its basic package for 36 months after the merger was completed and failed to increase consumer program choices despite its commitments to regulators before the merger was approved.
This could be potentially damaging to Sirius stock price, if the lawsuit is lost. Further, in all honesty, you read above how I thought Sirius was such a great buy because it was a monoply on the market. Well, now I think it is a NO BUY, because of that same problem. This lawsuit will likely take years to resolve.
Here is the latest Sirius update. I didn't listen to my own advice. Sirius stock hit a new all time 52-week high of $1.15 per share a couple days after Valentine's Day. I was pissed at myself. I sold my Sirius shares mostly because I needed money. I am a fool for not having faith in my ability to pick good stocks, as I have found 4 stocks in my life that I knew I should buy and because of my hesitation and second-guessing myself, I missed the shooting star that would have made me tens of thousands of dollars. I repurchased SIRIUS stock and vowed to myself to not look at it for months, and maybe even for a year. I purchased $10,000 of the stock to make up for the $5,000 I lost by it doubling in price while I did not own it.
PLAN FOR THE FUTURE: BUY SIRIUS STOCK TODAY.
DISCLAIMER: We are NOT responsible for ANY losses RELATED to this stock. We are NOT financial advisors. This is merely our uneducated personal opinion.
Contact Us - Site Map - Home
