Monday, January 10, 2005

SIRI Takes Dive

Both satellite radio stocks declined Monday after rumors that DirecTV video giant would start its own satellite radio program surfaced. The talk hit the tape after a hedge fund manager appeared on CNBC with the news. Even so, DirecTV CEO Chase Carey stated that his company would "leave XM and Sirius to duke it out." SIRI gives me jitters--its volatile even by my standards. I know I should have bought it when it was at 2 and change--after Howard Stern got signed and Mel Karmazin was appointed CEO, the stock catapulted 200%, leaving my sorry ass in the cold. The are plenty of bears out there, including one analyst that interestingly noticed how

people ignore the size of Sirius' float, which has greatly increased since that time due to recapitalization. The number of shares outstanding has risen from 40 million to well over 1 billion. So you can't look at a chart to see where [the stock] will be, because when it was at $8 or $9, the enterprise value was three times higher than it ever was at the highest stock price."

But if SIRI can get a grip on thier debt and sign on a few more household names--fogedaboutit!

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