Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Tuesday, August 01, 2006

SIRI and XMSR Both Higher

This morning the tape is showing that both Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) are both trading up after the open. SIRI is up about 1.6% at $4.27 and XMSR is up 5.9% to $12.26.

Last night Cramer discussed XMSR as a cheap stock that has bottomed out on its own, and one that could be acquired. He even noted that SIRI was the likely buyer, if such a deal would be possible.

This morning SIRI reported earnings and confirmed that its new personal live radio product named Stiletto is testing very well and will be available for consumers at the end of summer. SIRI gave yearly guidance at revenue of $615 million and 6.3 million subscribers, up from its previous expectation of more than $600 million in revenue and 6.2 million subscribers. SIRI added 600,460 subscribers in the quarter and ended with 4.68 million subscribers. It showed that monthly churn rates of customers leaving was actually up to 1.8% (from 1.4% prior) but subscriber acquisition costs had fallen 18% to about $131 from the $160 level last year.

Jon C. Ogg
August 1, 2006

Powered by Blogger