Sell and give the shorts and day traders what they want...lol NOT
Here’s An Idea: Stream Sirius Radio On Your iPhone
Posted by Eric Savitz
You know what would be cool? If you could stream Sirius (SIRI) or XM satellite radio
on your Apple (AAPL) iPhone.
As it happens, Citigroup’s Tony Wible this morning writes in a research note that there are “reports” of a new Internet streaming application that would allow SIRI users to listen on iPhones and other mobile phones. Wible says the idea highlights that SIRI’s value “lies in its content and not its hardware or infrastructure.”
Wible notes that as the seller of iPods, Apple is often seen as a competitor to satellite radio. But he says the new streaming application suggest the two companies may complement each other. Streaming SIRI on a portable device would eliminate hardware costs and help generate new subscribers at lower cost - although he notes that royalty rates are higher for Internet streaming. It also opens the door to purchasing individual tracks heard on satellite radio from iTunes.
Wible says that SIRI’s stock has been hurt by the macro softness and weakness in auto production, but that the company is “massively undervalued,” as investors fail to appreciate the size of merger synergies, the opportunity for top line improvement and the benefits of greater OEM penetration. He maintains a Buy rating and $6.50 price target.
SIRI today is up 4 cents, or 2.9%, to $1.42; AAPL is off 33 cents, or 0.2%, at $178.97.
Company debt and tightening credit go hand in hand. Shorts have a shelf life during any investor perceived crisis or near term struggle. Covering their sales is imminent to some degree and at some point that alone is not enough as day traders dump their shares in the wake of buying. However, the time will come when other business affiliations for Siri expanding into streaming content and advertising promos will surface. The satellite radio is here to stay and eventually the real potential will become crystal clear to the BIG money and when that happens everyone better buckle up for a ride of unforgettable
316,000,000 shares of XMSR multiplied by $8 equals $2,528,000,000. This was the XMSR market cap before the merger. With nearly 1.7 billion of debt, $400,000,000 of it at higher short term interest rate, and Siri market cap of 2.1 billion come to roughly $4.5 billion. Take into account the 18 million subscribers, and the merging costs, and the current 3 billion outstanding shares times $1.40 share price you have your current market cap. However, this is as bad as it will get as the market digs out of this current low. This company has only one way to go from here and that is up. Whether it is known or not by the general public, many good things are coming and we will soon see a huge beaming light at the start of an expanding tunnel. Please do not think that automobiles are the only potential exposure or future of satellite radio. Broadband will soon play a huge part as these guys pencil in deals with others forms of media. Did anyone really think that ABK (Ambac) would stay at $1.04 for very long? How about FNM or FRE,