Investor News

It seems that satellite radio generates a lot of passion in people. That is a good thing when that passion is grounded by a healthy dose of reality. Recent events in the satellite blogsphere seem to created a heated debate between Satwaves and Motley Fool. Somehow through the course of their “debate”, SiriusBuzz got dragged in. Motley Fool challenges the accuracy of Satwaves, and for whatever reason, Satwaves makes a decision to deflect that attention to SiriusBuzz in the opening paragraph of their rebuttal.

I had the honor this weekend to attend the Charity Awards Gala at the Ritz Carlton in Washington D.C. It was being at that event and dinner that made me reflect on a rather detailed and pointed response I had already started writing as a rebuttal to comments made by Mr. Matthews and Satwaves in his response to Motley Fool.

The Charity Awards Gala is an annual event that celebrates the giving of people and organizations. I had the pleasure of meeting and speaking with icons like boxing great Joe Frazier, presidential historian and advisor Doug Wead, music entertainer and movie star Pat Boone, and Fox News host and past presidential candidate Mike Huckabee.

It was a brief set of words spoken by Mike Huckabee event at the that caused me to stop and reflect on this article as well as the tone it would take. Mr. Huckabee stated, “if you do not give, you have not lived.” What Mr. Huckabee was stating was that the act of giving carries huge rewards for ones quality of life. People that generally carry a positive attitude, and are generous with their time and money have fuller lives because of their generosity. I had begun penning a rather pointed and detailed response to Mr. Matthews. Upon taking some time to reflect on what has transpired, I thought it best to approach this issue in a more positive way that perhaps can bring about good changes.

Continue Reading »

SiriusBuzz Radio will be airing tonight, September 3, 2009 at 9:00 PM Eastern. SiriusBuzz radio offers news and information about satellite radio from both an investors and consumers perspective. Callers are welcomed and can reach the show by dialing 347-945-7995.

Join the SiriusBuzz team for accurate in-depth information and out of this world coverage.

August 2009 brought with it the peak in auto sales in the United States. For satellite radio, which relies heavily on the auto sector for subscribers, the news may bring a sigh of relief, but there are many things to consider.

Cash for Clunkers was a driver of sales, and increased foot traffic in dealerships, but the program has ended, and there are many who think sales will return to lower levels when $4,500 incentives are missing. In the first month of the program, 180,000 cars were sold with incentives. This represented about 18% of the sales figure in July (July sales approached 1,000,000). In August, 500,000 more cars sold under the program. This translates to about 40% of the cars sold in August (August sales were 1,260,000). Absent Cash For Clunkers, sales would have been flat, if not worse than 2008.

For satellite radio the news would seem to be bitter sweet. On one hand, there are now more satellite radio equipped cars in the channel than without the program. On the other hand, there is a vehicle shortage, and sites such as Edmunds are predicting terrible sales in September, thereby reversing the boost we saw in sales due to Cash for Clunkers.

Continue Reading »

XM SkyDock – iPhone and iPod Touch – Horizontal

Continue Reading »

Sirius XM came out today with a new hardware line-up that takes their retail efforts to a new level, while at the same time bulking up their Internet Radio service. The new hardware and accessories have been highly anticipated because they enable iPhones and the iPod Touch to become satellite radios, thus offering a dual capability.

For consumers the release of these accessories will allow users to maximize their programming experience through one device. Instead of carrying around a phine, as well as a portable satellite receiver, users can find virtually all of their media in one place.

For investors, the news is also bright. Accessories such as those released today will boost the Internet radio subscriptions, which are priced at about $12.95 per month for Internet Radio only, or an additional $3.00 per month for existing satellite radio subscribers. “Best Of” packages should also see a boost, as listeners will want to have the ability to get Howard Stern, Baseball and football all on one platform . In addition, the company is not having to invest into more expesive receivers, because the interface is software based, and sirius XM does not bear the costs of manufacturing iPhones. This move will help the bottom line of the company.

Continue Reading »

In an SEC filing yesterday, it was announced that Liberty Media purchased $50 million of Sirius XM radio’s latest debt offering. The company issued $257 million in senior securred notes earlier this month to pay of the $250 million Liberty Media term loan. In the offering, Liberty Media purchased $50 million of the senior secured notes which are due in 2015.

The move by Sirius XM eases cash flow issues, and paves the way for much more financially friendly terms. Prior to this offering, Sirius XM had done a $500 million dollar deal to refinance the XM debt. Liberty purchased $100 million worth in that offering.

Liberty holds preferred shares that give them a 40% stake in the company. On top of that, they hold $150 million in Sirius XM’s debt. Liberty’s preferred shares, which are carry voting power, their seats on the Board of Directors of Sirius XM, and their holding of debt show that Liberty is maintaining strong interest in what transpires at Sirius XM Radio.

The Liberty deal was instrumental in helping out Sirius XM’s credit rating, as their stake was a clear sign to the street that Liberty would back the company up. This allowed the bonds to trade higher as the risk profile of Sirius XM became more palatable to investors. Sirius XM took things a step further by refinancing debt and getting better rates. All of these moves have boiled down to a cash flow friendly debt picture that should allow the company to get into a profitable position before much of their debt becomes due.

Clearly Liberty is heavily involved and remains interested in Sirius XM Radio. As with anything, there are pluses and minuses to a situation, but given where the company is now compared to three or four months ago, investors should be thankful that Liberty has taken such a high level of interest.

Position – Long Sirius XM, No Position Liberty

Even as I pen this article, the price of Sirius XM is moving up, and there appears to be nothing holding it back. Add to this some upcoming events that will be happening, and we see a big chance for Sirius XM to not only appreciate its share price, but to maintain it as well.

As with anything, we have to deal with reality and perception. What is happening is that those two factors are coming into alignment. Over the next two to three weeks, there are several factors that investors should consider regarding Sirius XM.

NEW HARDWARE

On August 26, 2009 Sirius XM will be announcing new hardware that will include accessories for the iPhone. Details of these accessories are starting to leak out, and as with anything relating to Apple, excitement is starting to brew. These accessories (rumored on the web to be called SkyDocks) open up a new market and new revenue opportunities for Sirius XM that are free of the costs of developing a radio because the iPhone or iPod touch will act as the user interface.

Also rumored are some more traditional satellite radio components that carry more features, better connection options, and an inexpensive price point. While these devices are a good addition, the iPhone accessories will take center stage.

With Sirius XM’s stock price already climbing, the news surrounding the new hardware will add support to the move.

Continue Reading »

Sirius XM Radio closed above $0.60 yesterday on good volume. The equity, which fell to as low as a nickel only a few months ago, seems to have found some legs in recent weeks, and during that time has shifted to bullish indicators across the board.

Technical analysis has many factors. Those that follow these indicators have typically been stymied by mixed signals, some bullish while others are bearish. For the first time in a long time, technical signals have aligned, giving perhaps the strongest indication for an upswing that can maintain itself going forward.

The Expotential Moving Average (EMA) is a moving average analysis that gives more weight to more recent prices. Sirius XM currently enjoys very bullish indicators on EMA’s for 5 day, 20 day, as well as the 50 day. Sirius XM is also bullish on Fibs, stochastics, and volume. In addition, Sirius XM closed above the $.057 resistance, which is now support.

One potential issue is that prior to this week, the resistance and support levels between $.0.50 and $0.60 have not been real strong. In my opinion, more volume above $0.60 will add strength to that support level, and it could give legs to a continued upward trend.

The buying trend is not huge, but there does seem to be a consistent “easy” pressure on the buy side of the trades. What is good is Sirius XM is not trading on the emotions of news or lack of news. This upward trend simply seems to be natural. This natural aspect of the latest moves is a positive in my opinion in that the equity is not being influenced by emotions, or a herd mentality.

Of course, the key here is maintaining the current trend. Should SIRI pass through $0.70 per share, investors could begin to gain confidence that the reverse split issue is becoming less of a drag on the company. If Sirius XM passes $1.00, it should begin to see more and stronger institutional play (although some institutions still will not buy). Institutions have been dabbling in the equity, but there are still many that have only $5 to $10 million invested, which by institution measures is not very substantial.

On a day when it appears that the markets are bullish as well, we could well see Sirius XM’s price continue to appreciate or build support at levels above $0.60.

Position – Long Sirius XM Radio