Used Car Anecdote
Satellite Radios are still not very prevalent in the used car market. A friend who sells used cars in the Florida Panhandle tells me that he has not thus far dealt with any sales involving a used vehicle with either XM or SIRI radio installed. He has been an alcoholic/gambler/used car salesman in different markets for 30 years.
Sky, an exotic dancer, bought a used Chrylser with SIRI installed. She let the sub lapse. She seemed bewildered by the satellite radio. She said that it had too many channels. The vehicle also had AM/FM radio with which she was already familiar. She was comfortable with FM.
To me, these anecdotes represent a bright future for SIRIXM. The market is wide open. When today's new cars hit the used car market, more and more customers will be exposed to SIRIXM. Intellectually and/or technically challenged persons like Sky will learn to use SIRIXM when their friends have it and talk about it.
If SIRIXM would open a free (advertising supported) band of channels people like Sky could be persuaded by advertising to buy or keep an existing sub. SIRIXM could pound them with its own ads among paid ads!
To start this off i do have stock with Siri and am hoping for the best in that area. Now on the personal side dealing with satellite radio and FM radio. Me as a person and me, myself and I..........i will probably never ever purchase satellite radio as long as there is FM as in i get everything i need from the FM channel's for free. I do not like radio show's in the morning "especially the Bob and Tom show" nor do i listen to sports. I have alot of friends at the fire department i work at that have bought new vehicles with Siri or XM and they where all excited about it and after several week's they never spoke of it again and turn's out when it come to actually paying for it they did not.
Now on a different note here, for people that live in area's to where they get FM channel's for there preference, say for instance: I love heavy rock and roll and where i live only get's country or mexican music, they might want to actually pay for satellite radio to get what they like to listen to.
So as far as used vehicle's i'm assuming a person has already experienced satellite radio dealing with a new vehicle and do not wish to start making monthy payments just to listen to the radio, or they are on a limited budget thus buying a used vehicle and don't want the extra payment monthy to listen to music, sports, or the news.
My point overall, people are not ready to start paying $24 a month or what ever the price for satellite radio when they can get FM radio for free to suit there needs. And i cannot remember the last time i seen a advertisement for satellite radio on TV..............advertisement is a must and not just assume "We are satellite radio" and everybody start buying it.
Welcome aboard. I don't want to jump down your throat based on one post but I kind of have some questions / discussion points for you.
I think a lot of people will agree with you, but the majority of that has been sidetracked because of the merger for various reasons (incertainity, don't show strength while trying to get approval, etc.). Even today I just posted I think it's about time they hit the TV's again, and I'm sure it will happen within the next few months as new products are rolled out and we approach the holidays.
Your point, if they didn't opt for it in their cars originally, why would they pick it up the second time around? I would argue that if you are buying a used car to begin with, you haven't been a new car owner recently. The used car market is generated by those who prefer new cars, and turn over their lease every couple of years. So the idea is that a whole new base of subscriber is being reached as these OEM cars filter through. Now yes, you are right a number of them are going to not opt for it because they are either strapped for cash, or they are the same group of satisfied with FM. But the argument many have made here (people have actually crunched the numbers), is that these subs are being added at little to no added cost to the companies, even if you only have a 50 percent take rate, its positive.
Plus the more attractive price point is going to help drive subs both in the new car and used car market. That's pretty undeniable.
I understand the idea of investing in the companies even if you don't use the product yourself, as long as you believe that there is a viable market out there of people who unlike yourself really see the usefulness in it in their lives. But correct me if I'm wrong, do you ever see a sustainable market demand being achieved for satellite radio? Or do you think the majority like yourself will always be satisfied with what they can get through FM?
And if you don't mind me asking, as an investor what is your background in the companies? How long have you been in? What made you decide to get in? And more importantly how do you not know how much revenue they get for a sub? When you say "hope for the best" I get the impression you are just rolling the dice with a company who in your eyes has a failing business model.
As far as the channels: have you TRIED to listen to Sirius/XM? I was the EXACT same way as you were. My parents were too. Why the hell would I want to pay for something I can get for free? Then I bought a Chevy that came with XM. It came with 3 months free. At the end of 3 months, I called up and paid for 4 years. It is amazing. In my area, I have 2 country stations, 1 real rock station, 1 wanna-be rock station, 2 easy listening, and 1 oldies station. With XM, I have like 8 country stations, 15 rock stations, not to mention the decades channels, 4 comedy stations (which I absolutely LOVE) all of the rap, reggae, and spanish music you could hope for, 24/7 news channels, regional traffic/weather channels if you are lucky enough to live in one of those areas, etc, etc, etc, etc. The amount of choice on Satellite Radio is enough to boggle the mind. If you travel? Don't worry. You never have to change the channel. Like the song you are hearing? Hit the info button and it will tell you the name of the song and the artist. SatRad has something that you simply cannot get from AM/FM: CHOICE. My parents thought I was crazy when I paid for XM. Then they got a Ford that came with Sirius. They tried it out, and now they have a lifetime subscription. I have heard this story way too many times to think that we are unique in our experiences.
It is amazing to me that you own stock in this company but know absolutely nothing about the business itself. How much research did you do prior to your stock purchase, or was it based on the advice of an advisor or someone that you saw on TV like Jim Cramer? You should always do your own due dilligance, and should know how a company works before you invest.
The price for Satellite Radio is not $24 a month. No where near that. The price for a single month if paid on a monthly basis is $12.95, and if you pay for a year at a time, it comes down to something like $10.95, and if you pay for longer, it is cheaper. As I said before, when I got my new truck some years ago, I called up and paid for 4 years in one pop. My average price per month ended up coming out to like $7.50 a month, or $90 a year. That is less than one tank of gas these days (for larger vehicles like mine anyways).
As far as the advertising, I repeat my question to you: Do you not know what has been going on with this stock? Were you aware that there was a merger process that was delayed longer than any other merger ever? More than a year and a half of delays by the DoJ and FCC kept these two companies silent for the most part. Do you really want to bad mouth your competition when you are trying to BUY them? They did have some general advertising, but you are right, they did not have much. There are reasons.
Yes i am really new to the market and i mean VERY new. I actually bought 700 share's about a week ago in SIRI at a 1.40 cause i do think there is a future in satellite radio, but i don't think it's gonna be one of those type future's as far as WOW and take's off really quick. I actually started buying my first online stock around the first of July. Please don't knock me. I'm learning as to why i am here from day one when i first started looking into SIRI. I'm trying to research on my own and well it isn't easy i have found out.
To me personally i think SIRI adding sports to the listings the subscription member list will probably jump up around another 200k within the next 4-5 months being that football season is starting up and there are alot of hard core people that love sports. Also with FORD stepping up with these new vehicle's coming out next year and the iphone addicts that like music will give alot more options for options and will add another 200k people to the membership list. Now of course this is over a one year period and i'm hoping with these new additions and the younger crowd "16-18 year olds" that are all about this type of stuff are starting to kick in and SIRI adding more stuff i'm hoping the stock's go up to at least $5 a share by the end of next year and increasing faster after that.
More or less with the new additions i like, and for future stuff the younger people grow older and keep there young way's and keep SIRI going and growing as long as SIRI keep's them inticed with new additions. I'm in this for the long run and hoping in 5-10 years SIRI stocks will be around 20-50 a share.
Hope this made since, i made my first alcoholic beverage after my first post....... :)
Sorry Newman i got a laugh when you said Cramer. I have actually learned alot from him but mainly the STOCK MARKET term's. Cramer to me is a advertiser/marketer/clown for that specific channel to keep people coming back for a good laugh.
I kind of thought that you were new. Welcome to Sirius, and welcome to SiriusBuzz!
One of the key things of stock research: Before you buy a stock, know what the company does and how it opperates. If you do not believe in the company, the business model, or the product, then do not invest. You need to review the 10-K and 10-Qs of the company to know what kind of finances you are dealing with.
You throw around the number 200k alot. You obviously are not aware of the numbers. When Sirius announced their 2nd quarter 2008 results (and this was a STAND ALONE report, not as a combined entity) they had added 1.8 million subscribers year over year (meaning from the same time last year). In the second quarter alone, Sirius added nearly 280k subscribers.
To get a view of how these two comapies have been addding subscribers, you view the subscriber chart Tyler put together. You will see that combined, the two companies added just over 600k subscribers last quarter alone. If they add 200k like you suggest, I will start selling now. :scared:
I would definately start doing your research and see what you think about this stock. They have a LOT of debt. A high debt company is not a good way to start your investment carreer, but at $1.40 and 700 shares, I can see you dont have a ton of money to invest. I was (and really still am) in your shoes and I understand the motives. Do not expect this stock to be a $5 stock by the end of next year. Very few profitless companies ever double within a year. Sure, it happens occasionally, and Sirius and XM both have done it before...
As I said, welcome to SiriusBuzz and welcome into the hair pulling experience of investing in satellite radio. I do hope you have a long term attitude about this stock, and if you do, I think Sirius will make you a very happy investor.
Thnx Newman. Yea i have been researching this stock alot and that is what brung me here in my search's. I knew the company was in dept and as far as the 200k thing "figure of speaking" i was just mainly saying that they are gonna grow with those new asset's added. Also i'm adding in a "Gut feeling" that being with the teenager's we have now moving up into the market when SIRI jumps aboard ship with that iPhone or what ever it's called I think once joined with that WATCH out i say cause that will open up more possibility's with other phone's and what not......
On a sad note my first investment was ABK or Ambac Financial. I bought 179 share's at $2.17 and with all the problem's with financials i got scared and bailed out when the share's ran up to $4.56 when i sold out. If i would have done my homework and realized there was good new's for the next day when it ran up to $6.18 i would have made alot more money.
I'm learning though and i'm looking for stocks for the long run and some to make a lil cash on the side also. Also i think we might have gotten a lil side tracked from the orginal subject of Used Car's. LOL. I still don't think it's gonna be a big hit with used car's but will increase in the next year or two with my other thinking's.
Like i said i'm new to this and well it's becoming rather addicting!
Yes, it does become rather additcting.
I agree with you that the used car market is not going to be that great. But you know what? It doesn't need to be. There are approximately 20 million radios out there that are not currently activated, and more are hitting the streets every day. These radios have the chance of adding to the bottom line of Sirus XM Radio with NO ADDITIONAL COST incurred to the company.
Of these 20 million radios, if even 1% (200k radios) activate at the rate of $10 per month, that is an additional 2 million dollars per month or 24 million dollars per year that the companies can add to the bottom line and never spend a penny! If you had the option of bringing in an additional 24 million a year for FREE, would you do it? I thought so.
BTW: If you think that the investment aspect of Satellite Radio is additive, you should REALLY try listening to the services. I listen to XM myself. I have had to have rental cars several times over the past few months, and listening to terrestrial radio now sickens me. It is so drastically different that it is not even funny. And what I said before is true. I have heard so many people talk about Satellite Radio: I never thought I would pay for radio, but then I got a free trial of Sirius/XM, and I can never go back. Try it. You will love it. :thumbup:
I've got one question though about these new car's being sold. I'm assuming these new cars that are being sold with SIRI system's in them that the vehicle manufactor has already paid a certain amount to install them. So if i'm correct these new car's coming out next year manufactored by FORD will have paid a certain amount of money up front to SIRI to have there system's installed. Am i correct?
Also on the used car side, say for instance i buy a FORD Focus which has a SIRI installed stereo and turn around and sell it 6 month's later how doe's that work.
You say there are 20 million radios out there that are not activated, where exactly are those radios sitting at? Are those the radio's in the new car's awaiting new membership after the inital free 3month, 6 month, 1 year awaiting for renewal into a full membership?
Oh by the way i'm from far far East Texas, i'm 39yro and it's my bed time............the alcoholic beverage's has gotten to me and it's time for me to hit the rack........
Thnx for your help Newman.