Satellite Radio (Sirius/XM) Ping List
Freepmail me to be added.
Posted on 03/15/2006 3:52:44 PM PST by It Aint Easy
In Wall Street terms, the recent “weakness” in XM Satellite Radio shares is “unwarranted,” and could actually be seen by investors as a buying opportunity. Sirius Satellite Radio has its own cheerleaders, as well, but two of the three analysts Billboard Radio Monitor surveyed think Sirius shares are worth about $5 per share, while one analyst pegs those shares to finish 2006 at $9.
XM and Sirius shares each hit a 52-week low yesterday (March 14) during the trading day. For XM that low was $20.26 per share, but the stock ended at $20.50 when the market closed. Historically, and on a price-adjusted basis, those XM shares have traded as low as $1.66 back in November 2002.
Sirius shares hit a 52-week low of $4.36 yesterday but closed at $4.45 per share. Historically, and on a price-adjusted basis, Sirius shares have traded as low as $0.38 in March of 2003.
Bear Stearns analyst Bob Peck sees XM finishing 2006 at $36. Banc of America Securities analyst Jonathan Jacoby sees those shares coming in at $33, and Goldman Sachs analyst Mark Wienkes writes that the fair value for XM stock is “about $30-$32.”
As for Sirius, Peck wrote as recently as yesterday (March 14) that the satcaster’s shares should be at $9 by year end. One piece of his reasoning is an expectation that first-quarter subscribership should come in strong. “If the numbers suggest that Howard Stern would remain a signficant factor determining market share in the future,” the analyst wrote, “we think the [subscribership] release could be a positive catalyst.”
Wienkes and Jacoby are less sanguine about Sirius’s prospects, at least for right now. The Goldman Sachs analyst says fair value for those shares is “about $5 per share.” The BofA analyst sees the shares finishing 2006 at $5.
Market info on the Sat. Radio companies, thought you might want to see it if you're an investor in them. =)
XM can go broke for all I care. Had it free with purchase of a new vehicle and never saw the need to pay for it later.
Anybody willing to pay for that filth has already got aboard.
Downside risk trumps any positive news.
XMSR is sitting on old support....if it falls thru $20..it's free to fall quite a bit.
Both charts are broken down...and trending down.
Lastly if you are long either stock....do yourself a favor and protect yourself with some sort of mental or hard stoploss.
any chance of these 2 merging so I dont have to decide which?
I think there is a solid market for ONE of these, but not enough for both. Sirius will probably drop out. It reminds me of the AFL vs. the NFL. The second in had no chance.
I just bought one of those Delphi XM2Go units. It's "amusing" so far. The interesting thing is I tuned into the 40's, 50's & 60's station. The 60's station was good, but my thoughts a few tunes into the 40's and 50's was "That's great!".
Jeez, I'm so "dated", and I was born in the 60's...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.