S&p reduces recommendation on shares of sirius xm radio to hold, from buy
This may be the signal I was waiting for. It may be time to start hoarding cash to start buying SIRIUS once again. These agencies are usually lagging in their recommendations (THEY HAD A BUY RATING ALL THE WAY DOWN FROM $3.50 to $0.12). Do not bet all your cash though, there's still one notch down for them and it is SELL...as a matter of fact you all may want to keep waiting a little bit longer to see how 2009 takes shape.
SNPMarketScopeResearchNotes2008-12-30 13:29:26.000SIRISIRIUS XM RADIOTAmobi, ELevy-CFAS&P REDUCES RECOMMENDATION ON SHARES OF SIRIUS XM RADIO TO HOLD, FROM BUYOur downgrade reflects increasing risks we see related to SIRI's ability to refinance nearly $1B of maturing debt in '09, which should result in further significant equity dilution with expected reverse split in difficult credit market. We see already-tempered subscriber growth projections also at risk amid sharply decelerating auto sales. Based on recent data points, we also do not expect a meaningful recovery (if not further deterioration) in anemic retail sales. We keep our 12-month target price at $0.50, based on relative ratio of enterprise value-to-projected sales.|US;SIRI|20706|253970
ALL their BS above was priced in the price of the stock while they had the BUY rating (which I though, "what in the F##$%#g world... the damn stock is tanking and they have a BUY rating on it ???" Anyway, I learned thru the years that these rating agencies are worth nothing when rating a company, you have to be a contrarian to these rating agencies to make any money).
PS: This is my first bullish posting for SIRIUS. I am sure it will go up from here on but I will bet only 1000 shares per week until the earnings announcement and debt refinance. After that all hell may break loose. I will keep a tight stop order for all my new shares.
Today, my .13 limit for 1000 shares was hit at closing (I placed the order when the stock dipped below that just to make sure it was coming back up... You know, this stock has a history of tanking at the close...).
This is mostly technical analysis. Their balance sheet still sucks...
