Sirius XM To Be Added To NASDAQ OMX Maker-Taker Pricing Plan
As if the options market was not challenging enough for the average investor, the somewhat controversial Maker-Taker pricing is being adopted for several equities, and Sirius XM Radio is among them. Beginning Monday, May 3rd, 2010. The Maker-taker concept is being rolled out by several exchanges in an effort to bolster liquidity in the market by rewarding market makers who add liquidity with rebates, while charging fees to those that remove liquidity.
The Maker-Taker concept, because of the rebates given, attracts business to certain exchanges. Exchanges that have begun rolling out the new policy have seen their market share increase. Nasdaq OMX announced today that it would apply maker-taker pricing to five more symbols on its PHLX exchange. The list included Sirius XM Radio Inc.
For the average investor, the news means very little other than the options market has seen increased volume because of the Maker-taker policy. Depending on your take on options trading, this could be a good or bad thing.
In separate news, Sirius XM’s short interest, as of April 15th, was up 20% to 131,600,204 shares. Given current volume levels, this short position could be covered in one day. It should be noted that short positions are normal in an equity. In particular as a hedge for convertibles. Current short interest is not outside the range that would be considered normal for this equity.
Position – Long Sirius XM Radio
tyler , you’ve been on a roll with the articles , and good ones at that…..gonna have to move you up to #1 for my news search.
thank you !!
i meant spencer…….
will there be a radio show thursday ?
Thank You for the kind words….spread the word….LOL
I have to agree with holdon…good to see you so active and with excellent and timely articles! Your blog has moved up on my news search as well. Thank you, Spencer…also, looking forward to your radio show on Thursday and your take on earnings and any one time charges for Q1.
Yes there is a radio show Thursday, and thank you.
Spencer,
What was the reason or criteria that Sirius was chosen for this and I assume it is a positive for the equity ?
The exchanges are looking for ways to make money, as well as garner more or keep market share. This has more to do with the exchanges than the equity. Sirius was likely chosen because of the volume that it trades
Spencer – Last year they grew EBITDA by cost cutting. This year the royalty pass through is causing EBITDA growth. Revenue has to keep growing. How do they do it next year? Will the Price freeze coming off have the effect on EBITDA? Revenue growth is key as well as sub growth.
Just a suggestion for a topic for Thursday. I won’t be calling this week.I don’t know how you can do a radio show every week. As Sirius matures the news will slow. It’s a radio business based on cash flow. Stock will do great, but the news will likely slow substantially. Their plan is set and very well known –
cars, cellphones, internet.
I have a deep believe that Sirius has an ADDITIONAL revenue source that is completely untapped. It’s the Home market. They should contract with Beazer, KB Homes, Pulte, Etc… to have new homes come completely wired with Sirius/XM with Bose speakers throughout the house. Bose has tremendous perceived value & would be a perfect partner. Make it simple & ready to go!.
They also need an easy package that will translate from car to home for current home owners. Perhaps they can contract with someone to come out to the home & set everything up including speakers & demonstrate to the homeowner the ease of going from car to home. Or better yet to just have separate systems for car & home. I know hey have home systems now but it’s not a tight, easy package. This needs to be mass marketed with a laser focused game plan.
This is HUGE untapped income stream that needs to have a division put together now & saturate the the U.S. home market. Flyers on the door, home shows, Home Depot, Lowes, etc…
It’s a natural.
Hey Cayla, I can’t believe someone besides me has finally recognized the obvious! It bewilders me that so many subscribers claim that they love satellite radio, yet never listen outside of the car. What a complete waste!!! I have a home dock wired into my stereo amp, and it takes all of 3 seconds to dock my plug & play and have Sirius playing in the house. A six year old could do it. I really like satellite radio, and have it playing in the house constantly; hooking it up is incredibly simple – but I realize that many adults are challenged by anything that requires thinking for more than 10 seconds.
I agree – this could be huge, and the concept needs to become a top priority. Once you have it in the house/apartment, etc., it becomes addictive. I barely watch television (I can’t stant most of it), so satellite radio is my main source of information/entertainment. Your idea of a division dedicated to filling this massive void makes perfect sense. The American public is pretty much brain dead, and it’s essential that you plant the idea in their heads, and then bombard them with constant advertising. They need to be prodded, like sheep, and then they will follow each other like a well behaved flock.
Satellite radio in the home is, like you said, a natural combination…. like mustard on a hot dog!
SIRI is the stock that will make you pay off your mortgage, you just have to have the guts to hold and wait, it has a great potential to grow, run by one of the smartest CEO, and offers by far the best Radio content, has a mediocre competion from the like of Pandora and HD radio…
I think SIRI will be one of the best stocks to buy and hold for the next few years.
I agree w/ the above posts, both the praise of Spencer/this site and the suggestions for additional revenue.
May I suggest a couple more ideas?
1- Live Nation: have a constant running list of upcoming concerts/festivals/operas offered and charge $1-10 for subscribers to listen to the Live Nation event. I’d be willing to pay that amount for odd/rare/and enjoyable events I am unable to attend.
2-When they are allowed or decide to increase rates, charge a nominal fee, say $1, and at the same time add in some value such as MLB, 2 free Live Nation broadcasts per year, or some other add on that doesn’t increase sirius’ cost even a little bit
3-Offer, don’t automatically send (to save costs), a sticker to subs for their cars. The revenue? offer those same subs one free month for each new sub they refer. That way SXM gets advertising and referrals.
4-Have a station that offers musicians an opportunity to send in their song for $100-$500. wouldn’t make a lot of money, but would be very unique to SXM
5-Give away free HOME dock/radios to current auto subs when they sign on for 2 years or more. Like someone mentioned here, home subs needs
to be pushed
6-old radios: free month or two for current subs that give away their old radios when the recipient signs up for year or more.
all this could happen quickly or slowly. At minimum, there could be a link on the sxm sites that link to current promotional offerings. They could even have a monthly sweepstakes to give away $1000 for those who link over to the page. The cost of all this is minimal to SXM yet the returns would be great.
They should also contract with Wolfgang’s Vault & air all of those amazing rock concerts from the 60’s, 70’s & 80’s. Everything from Hendrix, The Doors, Van Halen’s original World Tour & Ted Nugent playing in Central Park in 1976. That would be one great station to add in.