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.
Wednesday, February 17,2010 is a day that will be celebrated by SIRIUS XM investors for many years to come! The future is indeed bright for this company and to the WORLD I say open your arms and welcome us because we are coming and have a lot to offer you! LONG and STRONG SIRIUS XM
Nice plug … “Open Your Arms”. Booyah!
I am a new investor and have been riding the siri train since .13
19000 shares at .404… LONG LIVE SIRI
Good, fact-based reminder of where we’ve been and where we might be going. Does anyone think a spike over $2 is a possibility on a “going global” announcement? Seems within the realm of the possible to me, although I wouldn’t expect the SP to settle above $2.
I’m a South African Worldspace subscriber… or I should rather say I used to be until Liberty unceremoniously ceased Wordspace operations in Africa at the end of January. It also closed down the service in India at the end of December ’09, leaving thousands of subscribers without service. At the time, Liberty was never formally named as the WS buyer. We were simply told that the ‘new buyer’ choose not to go forward with operations in these places. I realise it’s a business decision, but it seems puzzling to shut down operations in the country where they had the most subscribers (India). Can someone please tell us if Liberty will eventually resume Worldspace’s Indian and African operations? We’re all holding out hope that they will, but news about the issue is incredibly scarce. Sorry for the long comment!
Redsaid, I wouldnt hold your breath. Liberty was the company that indeed cancelled your service, and as an investor, I understand the decision. It was a huge mistake to begin service there, before Europe. I would expect Europe first, then maybe China/India again next. Your probably out of luck for at least 2 years or more.
Thank you, king1 for your response to me. I have to admit, even though I kind of expected that to be the answer to my question, I’m still disappointed by it. I suppose a part of me really has been holding out hope that they would manage to ‘save’ us. I know our nations (and in this case, my entire continent) is probably too impoverished to be viable for a paying-subscription based market, but still, there is a genuine need for the service here. I can tell you that locally, WS made many mistakes. For one, they could have advertised the service far more aggressively in South Africa. I, for one, never knew we even HAD a sat radio service in South Africa until I won my receiver and a year-long subscription in a blogging contest. They could have marketed it as an affordable alternative to satellite television (which, in SA is extremely expensive since it is currently being monopolised by Multichoice, although we expect a secondary service to start operating later this year). A part of me still holds out hope. I can’t help it. I absolutely loved the service and miss it very, very much.