For some it may be hard to believe, but the price of a Sirius XM Radio share now equates to that of a first class postage stamp. While the entire globe seems on edge about financial crisis, the good ole U.S. postage stamp has remained a steadfast staple in an otherwise turbulent world.
Whether the market is up or down consumers can rely on a 42 cent stamp to deliver their mortgage payments, a birthday card, or a simple letter to a friend. A share of Sirius on the other hand delivers shareholder frustration, nervousness, and wonder about how the company could arrive at this point after merging for the better of the sector.
Debate about whether this is a good entry point could go on for days, and the current sentiment of the economy would be a major factor in that debate. Buy a postage stamp, and at least there is security and stability in knowing exactly what it will do six months from now.
For believers in the technology and the sector, 42 cents seems like a bargain, but even the most adventurous investors are tending to be a lot more conservative these days. As painful as the current price is, there is little else to do but watch. In the current market, equity after equity is taking a beating, and at this point people are so soured with the whole situation that they simply do not even want to participate anymore.
What is an investor to do? That is the million dollar question. Perhaps, at least for now, take that 42 cents, buy a stamp, and draft a heartfelt hand written letter to your senator or congressman expressing your frustration, concerns, and perception about the economy, because until the economy improves, low equity prices are going to be something we have to deal with.
Position - Long SIRI