Archive for February, 2010

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Join King Of All Trades For Live Coverage of Sirius XM Radio’s Q4 Conference Call

By
king1
– February 25, 2010
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By Relmor Demitrius

Join Kingofalltrades.com for live coverage of Sirius XM Radio’s (Nasdaq:SIRI) fourth quarter conference call results, at 8 am eastern standard time.  Sirius XM will announce guidance for 2010 and their quarterly results as well. 

Join our forum and live chat for instant analysis and opinions as news is released.

Visit www.kingofalltrades.com/forum.

Liberty Media will also report their earnings later in the day.

Liberty Capital (Nasdaq:LCAPA), which owns 40% of Sirius XM Radio may also add flavor or new information about the company as well.

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20

Why Are Shares of Sirius XM Radio Up in 2010?

By
king1
– February 24, 2010
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By Relmor Demitrius -

Sirius XM Radio’s (NASDAQ:SIRI) stock price has been on a positive uptrend as of late.  Since January the stock has increased from 60 cents a share to $1.18 earlier last week, which is almost a double.  It closed Wednesday near its 52 week high, on high volume.  In fact, volume has increased since the new year began.  Volume picked up even more in late January when Sirius XM released a press release giving a few details to their upcoming Q4 report, which will be held before the market opens, on February 25, this Thursday.  A lot of journalists and analysts have given their opinions as to why the run has occurred.  Speculation is running high right now regarding this equity before its conference call, which incidentally will be on the same day Liberty Media is having their conference call as well.  Since Liberty Media purchased 40% of the company through Liberty Capital (Nasdaq:LCAPA) in February of 2009, Liberty and Sirius XM have had different conference call dates.  Combining the conference call dates has only seemed to add to this speculation.  As usual when speculation is running high, one should try to break down things to their most basic levels, and just try to look at facts, or at least angles that can be supported by facts.  Lets do that now and see if we can’t get a handle on this price jump.

Why has Sirius gone up so much in 2010?

Well, I don’t think there is an easy answer, as some writers are offering.  I think it is a combination of a few fact based occurrences, wrapped into the complexity of market psychology.  Interpreting these facts can lead to a logical conclusion of this recent price action.  In this interpretation I will go forward with one assumption.  That Sirius XM shares are in demand by institutional investors.  Although it is a strong assumption also supported with facts, it is still an assumption never the less at this time.  To buy any stock however, once should assume this to be true, first and foremost.

After Sirius XM released their Q2 results, the stock had traded in a downtrend.  Despite improving cash flow, cutting costs, and refinancing debt (including removing the Liberty loan of 15% entirely) the stock still could not gain new highs.  Volume began dropping, as the same price range was offered repeatedly throughout September through the month of December.  There was no real news during this period to drive the stock price.  Only doubt and fear seemed to linger.  As the date to trade over $1 approached, Sirius XM needs to trade over $1 for 10 straight trading days before March 15th to avoid being delisted by Nasdaq, of which they now have logged 5 straight days, and the stock seemed stuck in the 50 and 60 cent range, buyers seemed intent to wait it out, to see if the reverse split/bid price rule requirement situation resolved. 

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3

Taser Beats the Street and Shows Improvement Year over Year

By
Andrew Montero
– February 19, 2010
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Taser International (NASDAQ:TASR) reported a record $104.3 million in net sales achieved for 2009, an increase of $11.4 million or 12.3% over 2008, driven mostly by growth in international and Federal sales. The company features several types of non lethal weapons such as the X26, M26, the C2 and the latest device the X3, a semi automatic multi shot stun weapon. The company reported that Federal and military sales increased significantly during Q4 2009, partly due to the first order of 2500 Taser X26 ECDs and related accessories shipped under an indefinite delivery/indefinite quantity (ID/IQ) contract from the United States Army Garrison Rock Island Arsenal. Additionally, The United States Marshals Service ordered 433 X26 ECDs.

Among the highlights of the 4th Quarter Conference call and filing were the following;

Adjusted revenues for Q4 2009 were $31.0 million, an increase of $4.6 million, or 17.6% when compared to Q4 2008. On a GAAP basis, net sales in Q4 2009 were $34.5 million, compared to $26.4 million in Q4 2008. Adjusted revenues exclude the impact of a $3.5 million revenue deferral related to the TASER X26 to X3 trade in credit program, most of which was recognized as revenue either when the trade in occurred or following the expiration of the offer on December 31, 2009.  Some cost savings were achieved through vigorous cost controls. Sales, General and Administrative (SG&A) expenses in Q4 2009 decreased 10.5% to $9.8 million.

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3

Sirius XM Satellite Radio Still a Favorite Target Among Naysayers

By
Andrew Montero
– February 17, 2010
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After more than a year of high wire balancing, Sirius XM Radio (NASDAQ:SIRI) shares which went as low as .05 cents last year, have recovered to the milestone of over one dollar in trading today, a price not seen since September 19 2008. Yet the bashing of the company and the fear mongering continues to roll in. It would behoove all current shareholders as well as possible future shareholders to review the business model and SEC filings of the past 6 months at a minimum, as the basher press is in full swing with feigned fears regarding sentiment as well as possible r/s scenario.

The CEO of Sirius XM Radio Mel Karmazin, is on record over the course of the last few months, as saying that a r/s will only be used to stave off delisting from the NASDAQ Global Market. It appears that organically, through merger synergies and other efficiencies gained since the merger of Sirius and XM in 2008, the combined company’s stock has answered the call and is seeing favorable sentiment among investors as well as many fund managers. The climb over a dollar is sure to increase both retail and institutional interest. At the very least, Sirius XM may be on the radar for being re-instated on the Russell Index this year, as it was removed last June due to its share price. Each year, the Russell Investment Group rebalances its indexes during its annual reconstitution commonly known as the Russell Reconstitution or the Russell Rebalance. The removal event occurred June 26 2009, so there are still several months before Sirius XM has an opportunity to be re instated.

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7

Sirius XM Pre Market Action Sees Over $1

By
king1
– February 17, 2010
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By Relmor Demitrius

With a possible historic profitable conference call now around a week away, shares of Sirius XM Radio (Nasdaq:SIRI) are finally trading over the $1 mark for the first time in over 1 year.  This is welcome news to Sirius XM long term investors, as the chance to avoid a reverse split is now within reach.  Stock still has plenty of time to log 10 trading days over $1 before the March 15th date, even removing the need for the company to file an exception request, which Sirius XM has hinted at they would very well do if so needed. 

No specific news relating to this recent move, but a steady combination of news events has allowed reality to begin to settle in on the stock price of late.  With most EBITDA evaluations coming in way over the current trading price, any up move in this stock is not surprising.  With recent S&P corporate credit rating upgrades, Blackberry application release, and a press release from Sirius XM in early January confirming free cash flow and gains in their subscriber base, has helped move the stock in the new year. 

The stock began the year trading at 60 cents, and has never looked back yet.  Sirius XM has dramatically improved their balance sheet in 2009, so any stock gains are not unexpected, if not long over due.

Mel Karmazin, CEO of Sirius XM Radio, and Liberty Media CEO Greg Maffei (Nasdaq:LCAPA), which owns 40% of Sirius XM Radio, have confirmed reports recently of a global plan, which would include the services of Sirius XM Radio.  With recent Ford commercials citing a “global” Ford, and featuring Sirius Satellite Radio, speculation of possible additional revenues from a global venture has sparked interest in the common.  As a long term investment, regardless of recent gains, the future seems bright, and opportunities for global growth is definitely a real possibility.  Worldspace assets, which already has transmission rights in Europe, Asia, and Africa, are being controlled by Liberty Media, and a plan to move forward should be coming soon from the company.

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