Originally Posted by
Sirius Roadkill
pretty humorous article . . . writer characterizes "buy-and-hold" effectiveness based on 1 month investment window . . seems to have amnesia about gains from $0.06 to $1.06 or 1,667%
Trader-Favorite Sirius Is Far From Radio’s Top Performer
by Owen Vater | May 11th
Recent drama tied to Nasdaq’s listing requirements has kept Sirius XM Radio (SIRI) on the radar of late, and while traders drive the stock’s average volume north of 150 million shares per day, buy and hold investors would have been much better off in other radio names over the last month. Given that Sirius has gained 9% for the period, that says a lot for the recent radio rally, and with most firms more than -10% off their 52-week highs, there could be room to the upside.
As a whole, the Radio Stocks Index has outperformed the S&P 500 by 10.5% over the last month, with penny player Citadel Broadcasting (CTDBQ) leading the way.
Meanwhile, Emmis Communications (EMMS),Cumulus Media (CMLS), and Saga Communications (SGA) are all outperforming Sirius for the period, with respective gains of 63%, 20%, and 10.5%. Cumulus partnered with private equity firm Crestview Partners and other investors to pursue acquisitions in early-April. Later that month Emmis received a buyout offer from JS Acquisition and Alden Global Capital worth $2.40 a share.
As the economy rebounds, firms will likely continue to open their wallets for advertising spending, which was slashed drastically during the recession. That’s also good news for various components of the Broadcast TV Stocks Index, where Gray Television (GTN), Sinclair Broadcast Group (SBGI), and Fisher Communications (FSCI) have all gained over 10% over the past month.
It will be interesting to see if Sirius can maintain its pricing above the $1 mark without a reverse split, and investors will also be watching for developments related to the potential Cumulus buying spree. Investors can track the Radio Stocks Index for performance trends and a suite of other metrics at tickerspy.com.