OTC:WRSPQ Archive

17

Sirius XM Radio (NASDAQ: SIRI) Validating Itself and Moving Up

By
Andrew Montero
– October 27, 2010
Share

globexmsiriusbig

There’s a reason why the stock of Sirius XM radio is moving up. The recent refinancing of some of its debt has left the company in a much more favorable position going forward with significantly reduced interest on their debt,that, along with the fact that more money stands to hit the bottom line as CAPEX will be reduced for the next several years, has left the company primed for success. There will be substantial differences, tangible ones on future quarterly balance sheets after 2010. With Sirius XM beginning to  show it will be routinely profitable, those $ 8 billion dollars in NOLs will really have some positive effect on the bottom line going forward.

So…. the market believes that Sirius XM is more valuable at the moment than Netflix( NASDAQ:NFLX).  Not a surprise since there are only 3.9 billion shares being traded and available right now and not really the 6.4 billion shares outstanding constantly quoted.  Liberty Media owns preferred shares with the potential to convert into another 2.5 billion or so common. Those shares are attributed to Liberty Capital (NASDAQ:LCAPA,LCAPB) And while that value percentage of the company has to be accounted for, it also makes  the available shares not so available.  Sirius still has another $3 billion in debt, but it is much more manageable debt.  Sirius XM commands an enterprise value of roughly $11.7 billion. But let’s take a closer look at that.  Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents found on the balance sheet. The reason the cash is subtracted is that once you have acquired complete ownership of the company, the cash becomes yours. I will come back to this part of the article a little later.

Sirius XM has kept monthly churn down and has reported churn of 1.8% latest quarter. Not a surprise really since Sirius XM subscribers receive significant discounts for pre  paying their subscriptions. Lets talk growth. Sirius XM’s subscriber base has grown from 1.6 million subscribers in 2003 to 20 million strong in 2010 just 7 years later, with no signs of stopping as the Auto industry recovers. We know and understand that OEM radios are the driver so far for subscribers, but the company has been smart if not aggressive in leveraging their content over the internet and portable devices as well.

Read the rest of this entry »

Tags: , , , , , , , ,
31

Worldspace De-Orbit in Lieu of Sale Contingency Plan Approved

By
Andrew Montero
– March 24, 2010
Share

 

What is left of Worldspace (OTC BB: WRSPQ) was granted permission(docket #0962 dated 3/24/2010) on March 24th in a Delaware courtroom to either find a suitor for their satellites, or de-orbit them. Liberty Media (NSDQ: LCAPA, LBTYA) attorney representatives were present when the decision was made. Although the satellites are actually owned by Worldspace Satellite Company Limited (SATCO) a non debtor affiliate of Worldspace, the contingency relief sought by Worldspace in the petition filed on March 16th was accepted, in the event they are unable to sell the satellites off.

One way or another, this issue will come to final resolution soon. The long dragged out Bankruptcy has not done any justice to anyone. Especially not all the former listeners of Worldspace, some of whom were stuck when the service went bottoms up with pre paid services they can no longer use to listen to Worldspace and its content which they once enjoyed. Final decisions yet to be made, let’s hope the final chapter and closure to this situation is quickly upon us and not dragged along even more.

Tags: , , , ,
1

Sirius XM Radio Enters New Territory

By
king1
– March 2, 2010
Share

By Relmor Demitrius

Sirius XM Radio (Nasdaq:SIRI) reported its fourth quarter results on February 25th.  In that report they finally gave some details to their global expansion plans, hinted at in their filings since 2009 and earlier.  According to Sirius XM, they have begun discussions with a Mexican Telecommunications Company, ACIR DARS, to begin selling their subscription based service in Mexico.

Already serving Canada, the desire to add other markets is hardly new news, as their existing satellite array already covers this area and others nearby.  With plans to add coverage in Puerto Rico already in play, a clear plan to cover most geographical markets on this side of the hemisphere are being more defined as time progresses.  On the other side of the ocean, with Liberty Media, through Liberty Capital (Nasdaq:LCAPA), already announcing intentions to offer the satellite radio service to other international markets, more than likely through Liberty’s recent control of Worldspace assets (OTC:WRSPQ), a clear global growth story is in play.

If your satellite coverage can reach other markets already, it makes sense to use their existing cost basis to add more subscribers through local national companies that can better market and distribute the product.  ACIR DARS will probably be in charge of billing and national service issues, while simply paying a royalty to Sirius XM for the content and delivery.  Sirius XM will also have the ability to be a part owner of this project, as they did with Sirius Canada and XM Canada, if the venture proves profitable on their level.  This could also mean a nice boost in retail radio revenues as well, as the drive to add subscribers at first in Mexico will more than likely come exclusively through the retail market.  ACIR DARS is a company that is deeply entrenched in the Mexican market already, and would make a perfect partner for Sirius XM going forward.

Long SIRI

Tags: , , , , , , , ,
3

Sirius XM Satellite Radio Still a Favorite Target Among Naysayers

By
Andrew Montero
– February 17, 2010
Share

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.

Read the rest of this entry »

Tags: , , , , ,
14

Sirius, Liberty, Worldspace Saga Continues

By
Andrew Montero
– December 6, 2009
Share

With Sirius XM Radio (NASDAQ: SIRI) CEO Mel Karmazins recent announcement of possibly getting involved in Liberty’s (NASDAQ: LCAPA) Worldspace acquisition (OTC BB: WRSPQ), it is time to take a look at how it could pan out.  I say could, because none of us are privy to what is actually taking place, but it is more apparent now than it ever has been that something is definitely going on between Liberty and Sirius, and Liberty and Worldspace through Worldspace’s  Bankruptcy proceedings.  The best news for Sirius shareholders is that no cash will be flowing from Sirius, at least not up front, for whatever finally does transpire.

In order to get a better grasp of the picture, let’s take a look at the Worldspace infrastructure.  The company has 2 satellites currently in the air, which are nearing the end of their operational life.  The company’s stated mission is to provide a variety of high quality programming through a subscription based service that uses low cost portable satellite radios and is available in underserved markets that today lack programming choice.  Worldspace is the first and only company with rights to the world’s globally allocated spectrum for digital satellite radio.  Its broadcast footprint covers over 130 countries including India and China, all of Africa and the Middle East and most of Western Europe, an area that includes five billion people and more than 300 million automobiles.  Its two fully operational satellites and ground infrastructure are based on proprietary and patented technology.

The Worldspace Satellite network has 2 satellites (Afristar and Asiastar) that service 3 large geographic areas, through three beams which that are each capable of carrying up to 80 channels.

Read the rest of this entry »

Tags: , , , , , ,