Sirius XM Radio Inc. (NASDAQ:SIRI)
I am wondering if you would be willing to share your perspectives on Sirius stock. I am an investor, and I am trying to find information about its merits.
Thanks for responding when your time permits.
SIRI has had quite the fall over the past several years. After issuing a Downtrend in July 2008, we Uptrended the stock on 2/17/08 at 19 cents. Despite doubling since, SIRI had had trouble getting through the 50 cent mark and staying there. This gives us some pause as any rallies at this level may once again meet resistance at that level. Ideally, you would like to see a breakout above 50 cents in order to confirm that Sirius is ready for new highs. I think to do so, investors will need evidence that the company can continue to increase subscriber using alternative means such as iPhones and other handhelds since consumers may balk at spending more for a new device to listen to radio when streaming options are available. This will be critical to combat the decline in auto sales which Sirius has relied on for new customers as new cars were coming with satellite radios. Further, the company will need to show that can in can add these subs profitably as the company has overpaid (in the eyes of many) for content which has caused some dilution in the equity. Perhaps there are other strategic initiatives the company can pursue. Much of this is speculative and its reflected in the currently low price per share level.
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