stock question
- Thread starter devil dave
- Start date
i dont think they would merge beacuase that would create a monopoly in satellite radio, sirius is ina ton of debt as well and xm isnt....However i could see sirius being bought out by a time warner, GE, or microsoft type company...FWIW i have used both and i love sirius, far superior than XM especially for sports
Two seperate questions in there really-a merger is different from a buyout-from what I heard Xm was suppossed yto buyout Sirius----that is not the case however as Mel Karmazin from Sirius would not have come on board as President if a buyout was on or near-the two will not be one any time soon.....Personally i feel Serius will be the stronger Co. in 3-5 years.
As of now Xm stock is worth much than Sirius bit i feeel in a year or two this will not be the case....buy Sirius now if you dont already have it...
As of now Xm stock is worth much than Sirius bit i feeel in a year or two this will not be the case....buy Sirius now if you dont already have it...
I will go a little further...if they merge they assume each others debt-substantial in the case of Sirius who shows absolutely zero in the earnings department-(for now)---best guess if they DID merge stock would probably go down IMO
worm44 said:
I don't know about that. Most car manufacturers seem to be adopting XM as their satellite of choice. The only car manufacturer that is big on Sirius is Chrysler and their cars aren't worth a damn to begin with. Delphi, who is behind XM technology, has a few more tricks up their sleeve. Sirius is going to have to overcome a very slow start to make up for the low customer base and enormous amount of debt. And don't even get me started with the Stern crap.
That "stern Crap" as you call it is one of the top 3 leading money producers in radio-his loss to CBS/viacom is very hard hitting...I am very, very familiar with Delphi who has troubles of their own....Sirius has some very good contracts already and eventually I believe satellite radio will have more listeners than terrestrial radio-years down the road
worm44 said:
That's one thing I definitely agree with. :yup I'm almost fed up with regular radio and once I can find an acceptable way to get XM into both of my cars, I will switch over.
worm44 said:
It may be a top money producer but I still think that Sirius overpaid while being at their customer and debt level. Most of the people I know that go for Sirius do it for the sports and they should try to capitalize on that. You got to do something to satisfy the customers that are paying more than XM.
BTW, I don't have satellite radio personally but I do listen to it all day at work.
Wouldnt mess with Sirius if I were you.....Its gonna take more than Mel and Howard to turn them around.
XM lost $650 million last year, year before over $500 million, and will lose money this year. might make a profit in 2007 if you are very bullish on subscriber growth and costs.
XM trades at 27 times sales (not earnings, sales)
Sirius trades at over 160 times sales (not earnings, sales)
XM to get each new subscriber has cost the company over $100 each (actually the number is anywhere between $62-$120) depends on what costs you want to contribute to the number.
read many bullish reports on both companies claiming they are buys, also some financial experts that state these are great growth companies.
they will have grow at a fast a quick rate to justify their current prices. should be interesting to see how this story plays out.
at this time would not own them and feel they are overvalued. it will come down to how quickly they can grow the subscriber base in the next 3-5 years.
thanks
selkirk
XM trades at 27 times sales (not earnings, sales)
Sirius trades at over 160 times sales (not earnings, sales)
XM to get each new subscriber has cost the company over $100 each (actually the number is anywhere between $62-$120) depends on what costs you want to contribute to the number.
read many bullish reports on both companies claiming they are buys, also some financial experts that state these are great growth companies.
they will have grow at a fast a quick rate to justify their current prices. should be interesting to see how this story plays out.
at this time would not own them and feel they are overvalued. it will come down to how quickly they can grow the subscriber base in the next 3-5 years.
thanks
selkirk
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selkirk, I remember somebody here was high on XM when it was a new thing. How has that stock performed since inception? I was coincidentally thinking about that the other day.
Sixfive do own any, if so congrats it went on an incredible run. in two years from a couple of dollars to $33.82
even if you bought it a year ago around $20 that is still a great return. and most of the brokers (23) follow it believe it is still a buy, could be missing something.
I mean sometimes when I see this much hype around a stock it scares me, of coarse would have said the same thing with google three months ago...lol.
probably stick to my boring financials and resource stocks, Encana just came in with good news and they have already bought back 5% of their stock and are looking at buying back 10%.
CNQ cnd. natural resources is going ahead with their cdn. oil sands.
ECA might have 15% more upside and cnq only 10% so not as exciting as a XSMR.
thanks
selkirk
even if you bought it a year ago around $20 that is still a great return. and most of the brokers (23) follow it believe it is still a buy, could be missing something.
I mean sometimes when I see this much hype around a stock it scares me, of coarse would have said the same thing with google three months ago...lol.
probably stick to my boring financials and resource stocks, Encana just came in with good news and they have already bought back 5% of their stock and are looking at buying back 10%.
CNQ cnd. natural resources is going ahead with their cdn. oil sands.
ECA might have 15% more upside and cnq only 10% so not as exciting as a XSMR.
thanks
selkirk
no, unfortunately, I didn't buy any. I think that's when I bought BPOP for my IRA. It's been a quality buy, but not that return, lol! Do you remember who that was that liked the xm? They made a mint on it.
