RadioBanter - View Single Post

May 26th 06, 08:10 PM posted to rec.radio.shortwave

In article .com,
wrote:

An interesting link. I've heard numerous business commentators remarks
that both Sirius and XM are in real trouble. Part of the problem is
that they're poorly run companies, part is that people are beginning to
realize that the technology is obsolete, and part is that the
programming is still extremely "commercial", despite lacking
commercials. Too bad, I guess. They should have known better.

XM and Sirius are both speculative stocks. Both companies have high
startup costs launching those satellites and current operating costs so
the EPS is still negative for both.

They both need a large numbers of subscribers to be profitable. Their
subscription base keeps growing but they are not there yet. Radios
installed by the auto manufactures are their best bet for this to happen.

http://finance.yahoo.com/q/ae?s=SIRI

http://finance.yahoo.com/q/ae?s=XMSR

The last two years have had good news for both companies with auto
companies committing to putting the receivers in their cars and a lot
of press for on the air talent that was signed up but it looks like
that news has run its course and the stock price is dropping. Looks
like Sirius has been selling off since last Sept. and XM since last
Jan. I have not looked at them that closely but their subscription base
is growing and the operating costs should not be going up so at some
point they should be profitable.

If either company comes up with more positive press like more new talent
being signed up to boost subscriptions then you can expect the price to
go back up.

I'll stick with terrestrial radio and when there is nothing I want to
hear on it I put in a CD of music.

--
Telamon
Ventura, California