By Relmor Demitrius
In this preview of the much anticipated Sirius XM Radio (NASDAQ: SIRI) Q3 Conference Call, I will address what many investors feel will be important factors in determining whether Sirius XM’s third quarter results are considered a success, neutral, or if it has points of concern. In analyzing any company’s balance sheet, a clear history of their past performances compared to current results is important. Apple (NASDAQ: AAPL) making $1 a share is considered a failure, while Sirius XM making $1 a share would be considered the biggest financial turnaround in the history of the market. It’s all perspective. A wise man once said, perception is reality.
This is mostly true, but a more important factor is whose perception of reality we should be concerned with here. Retail investors? Retail investors do control to a degree short term price movements on high volume, this is true, but for true value and sustained gains most experienced investors know its big money that moves the markets. Especially any one stock. Huge institutional interest (Sirius XM did indeed gain a higher percentage of ownership through institutions from Q1 to Q2, and I would expect this to be a trend as long as the stock price is low and the company continues to improve) moves stocks and keeps them stable investment vehicles.
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