Sirius blog blurb
Found this blurb written up on someones blog:
Sirius (SIRI) to be Killed by Apple (AAPL)?
With news Apple (NASDAQ:AAPL) is in negotiations with major music labels Universal Music Group, Sony Music Entertainment (NYSE:SNE), Warner Music Group Corp. (WMG) and EMI Group Ltd.for the purpose of improving iTunes customers’ access to music on multiple devices, the question is how painful that could become to Sirius (NASDAQ:SIRI), which is finally starting to get some competition, and some of it is potent.
"Clearly, Sirius XM Radio is in no position to take a hit from Apple," says Seeking Alpha, "whose confidence is expressed well through this segment of their annual report:
“'Additionally, the Company’s strategy includes expanding its distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience. The Company is therefore uniquely positioned to offer superior and well-integrated digital lifestyle and productivity solutions.'
"I believe that the price of SIRI stock may drop significantly if Apple follows through with its plans with the aforementioned various music industry giants and takes a generous slice of Sirius XM Radio’s pie of profit."
Sirius plunged Monday to closed at $1.74, dropping $0.07, or 3.87 percent.
A few people commented on other message boards that this was a reason for the drift downward on the stock. Personally I think its more of people buying into the stock in hopes of a short run up due to the financial uncuffing of Liberty Media, but thats more opinion than anything else.
P.S. On reading through this blurb, a lot of credence is given to the opinions of the SA gang, and previous blurbs and opinionated articles / hack pieces of theirs are more used to bash or pump stocks of their choosing. The person writing this blog entry, did so without a lot of facts to back up what they were writing. So please dont take my reposting of this as a belief in what it states. I do not share the authors opinion.