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The talk about volatility of sat radio stock prices it a bit
broad-brushed. If you bought XM exactly five years ago - when they were still a glimmer in the eyes, Every dollar you invested would be worth would be worth about 75 cents today - not horrible for an extremely speculatative stock. OTOH, every dollar you invested in Sirius exactly 5 years ago would be worth 5 cents today!! In other words, Sirius hugely diluted their stock to avoid bankruptcy. XM has also been issuing stock to keep up their momentum - but not to anywhere near the extent of Sirius. Both companies are still at the stage where they are "buying customers". By comparison, every dollar invested in General Electric exactly five years ago is worth about 75 cents today (about the same as XM) - and GE is a "solid" company. |
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