Originally Posted by
Sirius Roadkill
If this article wasn't so pathetic it would be laughable . . . it misses on so many levels.
Just as an example . . . Comcast (a cable company; the article references cable company P/E ratios as media subscription peers) has a projected EBITDA growth rate of 9.84% for 2010 . . . Sirius has a projected EBITDA growth rate of 20%!! Come-on now, an 8 multiple on a 20% growth rate?? (I guess that "nuance" escaped the author)
Secondly, the dilutive effect of the Liberty Preferred shares has not been lost on anyone here . . . this has long been baked-in to the share price; in fact, the day Mel stood before shareholders in November 2008 asking for approval to double the share count is the day it got baked-in, as most here and elsewhere assumed the newly authorized shares would in fact be quickly authorized in order to meet pressing debt obligations, not the least of which were the Goldman Sachs/Charlie Ergen convertible bonds (yes, I do understand that Charlie ultimately insisted on cash, but the initial expectation by shareholders, at the time the shares were voted and authorized, is that they would be used to pay-off the converts; hence they were immediately baked-in).
And lastly, any retail investor who is sophisticated enough to grasp an understanding of P/E ratios is certainly sophisticated enough to include Liberty's preferred shares in the fully diluted float.
To the author of this piece of garbage . . . nice try, now back to the drawing-board junior.