Our 12-month target price of $0.50 is based on
relative enterprise value to projected 2009 revenues.
Morningstar has the same target price.
They still have a buy recommendation as of 12/05/2008.
I wouldn't buy the debt: S&P Credit Rating CCC+
And this why the stock price has stayed depressed:
In early November, SIRI unveiled its most detailed
post-merger financial targets yet. While
implying a near-term deceleration in subscriber
growth, we think the long-term guidance
(including revenue and free cash flow projections
through 2013) enhances visibility, and
bodes relatively well for ongoing integration of
the combined company. Meanwhile, after what
we saw as mixed third quarter results, culminating
in a $5 billion goodwill impairment
charge, management offered a much-needed, if
inconclusive, outlook on what we view as critical
refinancing of debt due in 2009.
"Mixed results and inconclusive outlook...", they really need to hit one out of the ballpark @ the 12/18 meeting or at least post better than expected results next quarter.
Source: S&P stock report dated 12/05/2008.
What do you all think about the price target, fair or unfair ? Why ?