Siri Weekly Stock Thread for 3-29-10
Couple of articles from thestreet.con
1st is a revised rehash:
http://www.thestreet.com/story/10711...d-why-now.html
2nd is a respin of the above per orders of Jimmy . . who thought the first sounded a little too positive:
http://www.thestreet.com/_nasdaq/sto...FREE&cm_ite=NA
Q: I wonder how Mr. Corty calculates a "25% chance that the shares have no value"
A: He pulled it out of his ass
But don't take my word for it:
michael.corty@morningstar.com
(312) 696-6228
Michael Corty's Track Record
From BusinessWeek . . . November 30, 2007:
XM and Sirius announced their "merger of equals" in February. Each XM share would be exchanged for 4.6 Sirius shares.
Competing head to head, each firm has its advantages. XM has more subscribers, with more than 9 million listeners expected by the end of the year according to Standard & Poor's equity analyst Tuna Amobi. (S&P, like BusinessWeek, is a unit of The McGraw-Hill Cos.) But it's growing slower than Sirius which is expected to add 2.4 million customers in 2007, for a total of more than 8 million. Both are expected to win more customers as satellite radios are installed in new cars, but here XM has made deals with more automakers, analysts say.
Both companies are unprofitable, posting losses quarter after quarter. With a merger, they could reduce expenses for marketing, acquiring new subscribers and programming, says Morningstar (MORN) analyst Michael Corty.
"Although a merger would benefit both companies, ultimately we don't think the deal will be allowed by the U.S. government," Corty wrote. The government won't "allow a scenario in which consumers have only one option for satellite radio service."
michael.corty@morningstar.com
(312) 696-6228
1 Attachment(s)
Oops, I think Michael Corty forgot this . . .
From February 20, 2007:
"SUSIE GHARIB: Shares of Sirius and XM surged today as investors cheered the $13 billion merger deal between the two satellite radio companies. Sirius jumped 6 percent and XM soared over 10 percent. Sirius CEO Mel Karmazin, who will be the chief executive of the combined company, said today he expects cost savings of between $5 and $6 billion from the deal. Analyst Michael Corty of Morningstar says that the two satellite rivals would save enormous sums by not having to compete with each other."
michael.corty@morningstar.com
(312) 696-6228