Sirius XM (NSDQ: SIRI) continues to improve their standing as a viable company. The release of the Blackberry application PR from the company is just another tell tale sign that the company is marching forward and looking to the future in many directions: http://investor.sirius.com/releasedetail.cfm?ReleaseID=443007 The stock has seen a recent increase in daily volume and value despite some recent fear and bearishness from people worrying about a possible reverse split due to listing requirements for NASDAQ. To that end, CEO Mel Karmazin appears to be executing a plan to ensure the company stays listed on the NASDAQ Global Market. Some have even theorized that the company should r/s now to mitigate manipulation due to such a large share count. This would be a bad move in my humble opinion and I believe it is not the intent of Sirius XM or Mel Karmazin to let that happen now. Too many positives have been and continue to be achieved.
As several of us here at King of All Trades have stated of Sirius XM over the last few months, the combined company is presenting and executing a different business model than in previous years as separate companies. They have grown revenue and increased cash flow in one of the most challenging economies of our lifetimes, as well as stemmed the flow of subscriber losses with many consumers having much less discretionary income. The company has also stayed on point with improving costs through merger synergies and with continued improvements quarter over quarter in operating expenses. The fundamentals continue to move forward in positive fashion. Early press for the upcoming conference call is positive….so…try to think about why you invested in this company in the first place. The short term price swings are not important in the big picture; they are merely scenes in a play. You are not supposed to get in on opportunities like this, many try to shake your confidence in hope of getting your shares…and forcing you to buy higher…taking your hard earned profits, so know the risks, formulate a plan if you do not have one already and stick to it. The rest will sort itself out.
Sirius XM has yet to report on Used Car program numbers and their impact to the bottom line subscriber numbers, or the full impact of the new Skydock to retail subscriber numbers. The company continues to assert itself as a force to be reckoned with in Media and Content distribution. Liberty Medias (NSDQ: LCAPA) investment in Sirius XM last February has reaped a lot of fruit to date, and according to Greg Maffei of Liberty, Sirius is on track to continue to improve so much, that it will use up its NOLS far sooner than anticipated. As a side note, LCAPA stock just received an upgrade recently, as did Sirius XMs debt. Companies get debt upgrades when their balance sheets look more favorable.
Disclosure: Long SIRI
