1 Attachment(s)
Osborne Speaks on SAAR Revision!
I just got off the phone with Spencer Osborne . . . he was kind enough to call in from his Martha's Vineyard compound. I asked him about the J.D. Power SAAR revision to 12.6 million units. Osborne said:
"The news should be music to the ears of Sirius XM Satellite Radio (NASDAQ: SIRI) investors as it is through car sales that the company garners most of their subscriptions. With promotional subscriptions being the lifeblood to continued growth, the OEM channel has become a focal point of investors as they gauge their investment in satellite radio. One easy method to gauge the auto sector is to simply see if 1 million cars sell each month. One million is the magic number that provides enough GROSS subscriber additions to ensure that the company can announce positive NET subscribers and in general good financial metrics across the board."
I then asked Osborne what investors should note about a 12.6 million SAAR projection . . .
"Well, Sirius XM investors need only note one important number. Were auto sales above 1 million for the month? The answer to that question is a resounding YES."
I asked Osborne about the effects of the negative macro environment which is of much concern to Siriusly Long. Osborne said:
"Savvy investors understand that the overall news, even if it really is not negative to SIRI, will carry a short term impact followed by overall positives when the company reports."
I thanked Ozzy for his time, wished him well for the remainder of his vacation and asked about his current price target . . .
"Thank you for the kind words. My target for the end of the year is $2.70 to $2.80. I have had that price target in tact for a couple of months now. When Q3 auto sales are in the books, when we see exactly what satellite radio 2.0 can deliver this year, when we see what will happen with the Blessing case, and when we see what type of pricing the company will have, I will have enough information to assess reasons to move my target. Right now I am looking for solutions to all of these that will play out in the next couple of months. I have my cautions in place, and if they materialize, my opinion can change."
Sirius XM Wins Court Approval
Sirius XM Radio Inc. (SIRI) won court approval of a lawsuit against subscribers who claimed the satellite radio broadcaster broke the law when it raised prices after merging with its only rival.
U.S. Judge Harold Baer in New York endorsed the accord over the objections of dozens of subscribers who attended a hearing Aug. 8, according to a filing today.
“I have reviewed the settlement’s substantive terms and conclude that they demonstrate sufficient fairness, adequacy and reasonableness,” Baer wrote.
http://www.bloomberg.com/news/2011-0...it-accord.html