By Relmor Demitrius -

Sirius XM Radio (NASDAQ:SIRI) filed its 10-K Annual Report on Thursday, February 25th.  It was another strong quarter for the company, improving further on their operating income and free cash flow year to year.  Also reporting this week was Liberty Media, which owns 40% of Sirius XM, within Liberty Capital (Nasdaq:LCAPA).  They also mentioned all the positives about the company, and that they may seek to add more shares in it as well.  Not many I’m assuming, as they cannot add more than 4.9% more right now, according to their own agreement with Sirius XM.  They could add more than that after 1 more year, but more likely 2 years would be the target time frame for anything to happen in this area.

Highlights include:

• Positive Free Cash Flow for the entire 2009 year.
• Have had two consecutive quarters of positive subscriber growth.
• Reported that almost 100 percent of the royalty rate charges had hit subscribers, of ones that could possible be charged.
• Positive Operating Income
• Beat EBITDA estimates and guidance for 2009.
• Reported Break Even Earnings, beating the street consensus by 200%.

Despite paying down outstanding bonds, huge interest payments on their debt, and it being one of the worst economic years in decades, Sirius XM left 2009 with around the same amount of cash on had they started the year with, and even added 3 million to their totals in Q4 from Q3 of this year. Read the rest of this entry →

By Steve Garcia -

As previously speculated in past articles, http://www.kingofalltrades.com/author/asm610

Liberty Media (NASDAQ: LCAPA, NASDAQ:LINTA) essentially confirmed they have plans in the works to take their satellite radio interests global this past week.  Liberty Media CEO Greg Maffei answered a question after his company’s 4th Quarter Conference Call regarding Worldspace (OTC: WRSPQ) and Liberty’s acquisition efforts aimed at Worldspace assets through Bankruptcy court.  Among his comments was a statement that Worldspace has L-Band spectrum licensing worldwide, and that they were looking for a creative way to monetize Sirius XM Radio,  converting their  shares in the company  is not an option they are likely to pursue at this time.  As a matter of fact, Mr. Maffei said that Board Chairman John Malone would be firmly against that option.

Looking at the broader picture, Liberty Media has an important connection in Europe through Liberty Global (NASDAQ:LBTYA, NASDAQ:LBTYB), which has dealt intensively with licensing and programming transmission regulations with many member countries of the European Union (EU).  With Worldspace having L-Band spectrum licensing globally, and both the XM infrastructure side of Sirius XM Radio and Worldspace having come from the same technologies, it’s not a big leap to speculate that the XM side of Sirius XM is a key part of the globalization planning.  Worldspace broadcasts in the 1467-1492 MHz frequency range of the “L” band, and Worldspace’s proprietary and patented technology is coincidentally used in each XM Radio receiver.  In fact, the Worldspace Global Content and Programming department used to provide approximately 10% of the original content music programming heard in America on XM Satellite Radio. Read the rest of this entry →

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.

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.  Read the rest of this entry →