Technical Perspective of SIRI
In cases such as this, clues can often be found through technical analysis. Although it is best to use a combined strategy of fundamental and technical analysis when making making investment decisions, I will focus on a few technical aspects of Sirius XM.
Depending on the charting system that a person chooses to utilize, there is a distinct pattern developing. Technicians refer to them as bullish triangles, bullish pennants and bullish flags. The rectangular flag shape is the product of consolidation. Consolidation occurs when the price seems to bounce between an upper and lower price limit as fewer buyers are willing to pay the high price that was commanded just days before. Conversely, sellers are unwilling to sell below a lower support limit. The charts demonstrate that this bullish pattern is occurring with Sirius XM common stock:
The above example indicates the high pole which was followed by congestion that resulted in 2 parallel lines downward while maintaining the uptrend, qualifying this as a bullish flag pattern. Other types of charts indicate a bullish pennant formation:
Flags and pennants represent pauses while a trend consolidates and are reliable continuation signals in a strong trend. The technical target price based on this trend would be approximately .64. On a percentage basis, this represents a potential 75% increase from Friday’s closing price that traders will be looking at very closely, as the trend continues to develop.
The only missing puzzle piece is the time frame in which the uptrend will resume as a catalyst is often needed. In SIRI’s case, such a catalyst may come Monday in the way of positive news from the Obama administration regarding GM and Chrysler.
Position: Long Sirius XM
I have been long for 5 years i averaged down and i have never felt better.Sirius contacted me today (personally by phone),never happened before to let me know the internet stream has been updated so i checked and sure enough all new stations and great sound.I feel the iphone app will be announced monday hence all the xm problems with the 128k.We will see your catalyst on early monday morning.LONG AND STRONG 2009
Brandon, This info is very interesting. It also shows that this stock is not being shorted as in the past months. There is also a small article about advertising on Sirius Xm “How to Make a Mint Advertising on Sirius Xm”. Also other positive signs are Motley Fool coming out w/ some positive opinionated articles. Last but not least are the analyst junping back on the good side of SIRI. If this economy starts gaining positive momentum w/ Sirius Xm seeming to be getting their ducks lined up in order I can’t even guess on the possibilities of where this company is headed. A company that was so close to BK could be one of if not the hottest stocks in the short & long term. THANKS for the hard work. I’m renergized on why I started buying this stock 5 years ago.
What confuses me about this stock is the same thing that confused me about Amazon when it was a $2 and now at $70, RIMM at $5 now (split adjusted) 250, and yahoo at $1 up 6000% at one point. All stock which I owned and made some decent money.
If the company is able to push of bankruptcy, with just that the stock should be trading at around $5.00. Second, with the merger they can focus on cost effective growth in many areas and start to invest money into business development. Partnering with wireless device makers, wireless carrriers, PC manufactures. licensing rights to the UK, Australia, etc. I can guaruntee you there are 10M more people worldwide that would pay $5 a month US to listin to Howard Stern. That alone is $600M to the bottom line with no additional cost. It is a global world. RIMM has getting hammered due to slower sales in teh US for a while; with the market totally discounting their sales over seas. US dollar gets devalued and their stock took off like a rocket.
SIRI is set for the same type of rocket ride. This is not about pennies or hopping this stock gets to $.70, I am talking about the stock getting back to $70.00 at some point. As long as they protect and pay for their unique content, which is the key, there is no end to their growth. So come out which Chinese content and sell this to 1 Billion people in China.
I would work for SIRI for free and do their Bus Dev for 5 years just for stock. As soon as they start to leverage relationships like the tech industry does, there is virtualy no limit. How about new homes pre-wired with a subscription paid for 5 years as a new incentive. Sell 1 million homes over 10 years. Way to much upside here. Stock should at minimum be at $5.00 now.
I am longer than long for a long.
BM,
You got dissed by the Duke on the Yahoo board…..
http://messages.finance.yahoo......#038;frt=2
Let me get this straight. Some piker on the yazoo board who has never been published anywhere, who has never done even an internet radio show and who played no role in the new sirius movie dissed me?
Am I to be offended by a professional message board poster whom if he had anything of value to offer anywhere to anyone would be doing so at a reputable website such as SiriusBuzz, rather than offer posts that will go unchallenged by yazoo’s plethora of unsophisticated investors?
Apparently, my pal from satwaves already took care of the schmuck. Seems the “Duke” doesn’t have sufficient reading comprehension skills.
I agree. I believe him to be a fraud. Just wanted to let you know that he mentioned you in a negative way.
I know. I have no doubt the POS visits this site. I was talking to him.
Never been a fan of technical analysis. Seen way too many people lose way too much money following what the witchdoctor says the squiggly lines mean. Having said that, I do feel that Sirius can rise further still. I felt that at a nickel as well as at $5.00. The overriding problem is when almost 30% of your stock is being shorted aggressively, with much manufactured negative bullshit to go along with it, a company is facing a hard slog in the market regardless of its’ core value/business plan. The short numbers also fail to account for the naked shorts. I think we would find that billions of shares of companies from the financial sector were victims of this crap. However, it is doubtful we will ever know because nobody in power is going to really do anything about it. They risk their life if they try to shut down this mega billion scam.