Sirius XM Pre Market Action Sees Over $1
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.

