[quote:a515a60cc4="KennethPenn"]Interesting company. Here is something I noticed: "The Company holds one of only two licenses issued by the Federal Communications Commission (FCC) to operate a national satellite radio system." That's decent. A near monopoly. However, they have barely any revenue and are losing money big time. Their stock can definitely go lower before it takes off for the stratosphere.[/quote:a515a60cc4] i do agree with u kennethpenn but i invested in when siri was down near the .60's and sold it around 1.80 but to me this company is a good investment on the long run because of they are holding a good market share and which is constantly increasing. Chahine
I agree it may be a good long term investment. I do like the fact that they have a huge market share. But, they only have 29,000 customers. That is a tiny company based on today's companies. Companies with less than 30,000 customers have not yet proven they can operate long term, but congrats on your triple :)
What is satellite radio exactly?
[url]http://www.siriusradio.com/[/url] At SIRIUS, we make satellite radio. And we do it right. That means 60 satellite radio streams of music. And no commercials. None. Zilch. Zip. Zero. Plus we give you 40 streams of great talk, news, sports and entertainment programming, much of it exclusive to SIRIUS. It all starts at our studios in NYC's Rockefeller Center. On any given day as musicians stop by for Live SIRIUS Sessions, our stream jockeys are hard at work taking satellite radio to the next level. The passion, the dedication, and the love of music contained in these walls are enough to change the way the world listens to music. Which is pretty much what we've set out to do. And we're doing it with satellites. Every second of the day, SIRIUS is shooting those 100 streams of amazing radio straight into the heavens to our three state-of-the-art satellites that rotate in figure eight, geo-synchronous orbits around the earth. So every SIRIUS stream of satellite radio, all 100 of them, is available throughout the continental US with crisp digital-quality sound all down the line. You just can't find radio like this on any other dial.
There is definitely a market for it. I'm keeping my eye on this one.
I don't see a normal family putting this in their car. I can see the market for long haul truckers for sure, what do you think?
[quote:4327deb7dd="bobjitsu"]I don't see a normal family putting this in their car. I can see the market for long haul truckers for sure, what do you think?[/quote:4327deb7dd] the good thing is that they are making deals with manufacturers to preinstall them in the cars. and if u have them u automatically will not waste it and tend to use it....... therefore the market is still vast. Chahine
I agree with the long haul trucker comment. It's definitely a useful service for people who are in their cars a lot. I would also be interested in learning more about their contract to pre-install this. This type of "cheap stock" has a lot more promise because of the company's potential. They just have to lose money for awhile.
What the hell, I'm buying about 100 shares of this now. It's at about $2.20 a share, XM is climbing pretty rapidly.
u may want to look at its direct competitor too xmradio.... they are also holding a fair market share too.... chahine
There is some company that has this same concept, and it's also portable. You can take your receiver out of your car, and then still use it in your house. It might even be this one.. that feature wouldn't be a bad selling point. You can listen to the music that YOU want to listen to without getting bombarded with commercials..
Another thing that I know satellite radio is used big time for is major companies. I know that all of the grocery stores around me operate with satellite radio. I believe they are probably renting a particular station from one of the carriers. It could pick up quite a bit in terms of those large companies.
Commercial free anything has a good chance of success.
nice call bobi u bought at 2.20 now selling at 3.80 nice profit there. chahine
True enough about commercial free anything :) Sometimes it seems as if there are twice as many commercials than music. Another original way to compete with CD players in cars. Not to mention the fact that they also own one of two satellite liscences also gives them an interesting edge. One question.. Any idea on how much it costs to maintain the satellite system? It seems this might be sort of costly..
whats the cost to the customer??
Customers to Sirius pay roughly 12 bucks a month for the satellite radio, XM charges about $9.95 a month or so. I'm keeping my eye on this stock too but i see it going down after this little run its had the past few weeks. Sirius has very little revenue right now, their main source is through subscription charges and they don't have too many right now (i think it was about 250 000 customers if i remember correctly). Sirius has exclusive contracts with Ford, BMW,and Daimler Chrysler to have satellite radios as a factory option on new cars but their competitor XM has contracts with Honda, Toyota, GM, and i believe Nissan too. Sirius isn't going to make a profit anytime soon, there burning money very fast....i think about 90 million the past few quarters but they do have long-term potential with their satellite radios. Sirius has also just signed exclusive contracts with the NFL and also the NBA, and i think the NHL too as a means to differentiate themselves from their competitor XM. They've probably won over a lot of sports fans that are interested in satellite radio but those deals came expensive......the NFL deal cost them 220 million i believe, more expenses for a company that doesn't stand to gain a profit anytime soon.
Bobjitsu.. It looks as if your prediction about long haul truckers is very much on the money! I also heard that Howard Stern is thinking about going off of the public airwaves (due to massive fines from the FCC) and taking his show on satellite. It's at 3.10 a share right now..
This is starting to look like a better deal all the time. Definitely on my watch list.
[quote:c02bd68f4b="Hathor"]Bobjitsu.. It looks as if your prediction about long haul truckers is very much on the money! I also heard that Howard Stern is thinking about going off of the public airwaves (due to massive fines from the FCC) and taking his show on satellite. It's at 3.10 a share right now..[/quote:c02bd68f4b] Yep and he won't be going to XM....they are owned by Clear Channel, that is the same company that took him off the air in 6 markets. If Howard goes to Sirius I'll be freakin rich, they will sell millions of new subscriptions....I'll be buying 2 of them for my truck and my wifes SUV for sure. Howard fans will go wherever he goes....that is for sure.
In 2003, they did $12.9 million in sales and lost $226 Million! They are still a long way from profitibality so this one is a long term hold (5 years or more). The story is good. The product is good, but it took a ton of capital building the network.
FF, of course they lost money. It takes billions to launch satellites. But you need to keep in mind something very special about this company: Only Two (2) companies in the world are allowed to sell satellite radio. XMSR is one and SIRI is the other. XMSR is largely owned by GM. Now that sucks, you think, because GM won't distribute SIRI. True. But that means Ford won't distribute XMSR. Exactly. Only two competitors makes for very interesting possibilities. If you had the patience to load up on this on under $10 for a few years, you could end up with a huge winner in 6 to 10 years.
[b:1302506075]SIRIUS Satellite Radio Available as Factory-Installed Option on Kenworth Class 8 Trucks Starting in June March 24, 2004 1:05:00 PM ET SIRIUS Provides Kenworth Customers with Non-Stop Entertainment Coast-to-Coast NEW YORK, March 24 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio SIRI, the premier cross-country satellite radio service, announced that Kenworth will offer SIRIUS as a factory-installed option on Class 8 model trucks beginning in June. (Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 ) SIRIUS provides subscribers with more than 100 digital-quality channels of premium entertainment. In addition to 61 streams of 100% commercial-free music, SIRIUS offers subscribers nationwide play-by-play of NHL, NBA and NFL games, as well as talk programming from ESPN and Motor Racing Network (MRN). SIRIUS will also create "The NFL Satellite Radio Network," a year-round stream of NFL content. SIRIUS also offers truckers around-the-clock traffic and weather reports for the top 20 traffic markets in the country, and the SIRIUS Trucking Network, including overnight programming from the Midnight Trucking Radio Network. "For operators who are on the road a lot, satellite radio service is a welcome feature for music and other entertainment," said Steve Gilligan, Kenworth's General Marketing Manager. "Kenworth is pleased to make this available to our customers." The option, available on all T2000, W900, T800, T600, and C500 models includes a Kenworth cassette or CD radio supplied by Delphi, Delphi SIRIUS tuner and Delphi SIRIUS antenna supplied by Pana-Pacific, the exclusive distributor of Delphi products to the heavy truck and commercial vehicle markets. "SIRIUS looks forward to working with Kenworth to make available SIRIUS' premium sports, news, traffic, commercial-free music, and entertainment programming to their very discerning customers," said Tom Steckbeck, Vice President, Non-Automotive OEM and Specialty Markets, SIRIUS. "We believe SIRIUS is the perfect complement to Kenworth's Class 8 line of trucks." About Kenworth Kenworth Truck Company, a division of PACCAR Inc., is a leading manufacturer of heavy and medium duty trucks. Kenworth is the recipient of the 2003 J.D. Power and Associates award for Highest in Customer Satisfaction among Pickup and Delivery Segment Class 8 Trucks. Kenworth's Internet home page is at www.kenworth.com. Kenworth. The World's Best[/b:1302506075]
That's a nice deal for them. This is a very intriguing stock. The fact you can buy 1,000 shares for under $4k is very appealing.
Why not buy XMSR? They already have 1.6 million subscribers! Plus I've been seeing their ads a lot lately. Look like they are starting to reach critical mass.
in my opinion both of the company XMSR and SIRI are strong favorable bets because both companies are performing in a virtual monopoly market where entering in this sector is virtually impossible except if u have a lot of $$$$. SIRI for sure is a safe bet because they are increasing their market share on a consistent basis (damn deleted a research done concerning thein market share comparison.. ill try to find it again) and their share price is fairly cheap compared to the only competitor which is XMSR. for sure i like these companies where they are the ones who dominate the market.. If i had to invest in any of these stocks ill even my chances by geting both... :wink: chahine
It's even better than a virtual monopoly. In the US they enjoy a duopoly. Only these two companies can legally sell SatRad. That part gets me very excited. Plus I like the exclusive NFL deal for SIRI. I just wonder if they're having problems marketing to new customers.
I have a few questions (or thoughts as the case may be) Do these 2 companies have other "products" they can offer? Are they or could they be involved with satellite imagery? (Taking high definition photos from space?) or some other related business?
I don't like the flat rate pricing structure.
why is that?? they i think are the best to attract customers!!! chahine
Companies that sell flat rate almost always run into troubles. And what can SIRI do for incremental sales? They need to be able to sell other products to the customers. Otherwise, they are in trouble. Even with 5 million customers they're only bringing in $60 million a month and they already have a market cap of $3 billion! And SIRI has only like 60,000 customers!
They annouced a deal today. Supposed to bring in 500,000 new subs over the next two years. This is looking better.
They just announced that Howard Stern has been pulled by Clear Channel. I caught only a blip of what happened to cause this, but I doubt he'll go down without a fight..
Has Howard Stern ever done anything without a fight?
Howard was "suspended" a few weeks ago, the news now is they are offically pulling the show permanently. He does have a contract so they still have to fulfill it and pay him.
He's gonna be too pricy for SatRad.
To move away from Howard Stern, I visited the New York International AutoShow and by the way it was awesome, but unfortunately a little crowded ( very unexpected because its Easter Sunday) and Sirius was one of the biggest sponsors there. XM which is its main competition had some ads and posters but Sirius really went all out here, I'm curious to see if this has any impact on the sales or stock price if any impact. You would imagine a lot of people buy cars there, and since Sirius is pretty much for cars it would get a lot more subscribers.... We shall see :)
hey i didn't do all that research but wrote a basic research on the business basics... tell me what u think well this was supposed to be out last week but better be today than never :wink: http://www.socr.uwindsor.ca/~mamodal/stock/report/sirius.pdf chahine
How high do you expect this stock to go up by Christmas?
i think depending on how the market reads the signs and how they perform in this years annual return, if positive they can be expected to have at least an easy 30% gain but the company basis are strong they are paying their debts off and i don't see any signs of weekness... they are growing slowly but surely.... IMHO chahine
XM seems like a better bet than SIRI. They're approaching 2 million customers and they advertise a lot more.
but after looking at there product line there system is a lot more inflexible for instance XM if they have not changed it from the last time i checked required antena systems... All the people that have used XM say that they are a bit bulky. They say that the Sirius radio systems are usually preset and also a lot more stylish. if any of u use it you will have to confirm that for me. chahine
ya my uncle has a sirius satellite radio system and they are preset and alot more stylish than XM, and also sirius is more towards the younger listeners, which are the main customers of satellite radio systems. XM has softer stations, not much rap, or pop music that the younger audience listens too...which points towards the question that many XM customers might switch to SIRI if SIRI advertises, or a friend gets the system, and tells a friend...and so on and so forth, but i think this is a great buy...i just dont kow where to buy it at...any suggestions?
i think in both cases sirius is the winner because if it advertises it reaches a wider group the process of 1 friend to another will pay off but will take time i guess there the customers will be guaranteed in the sense that they will have tested the product before hand will not go to xm. chahine
ya i agree, but what would u suggest me buy this at? $3?
i don't suggest buying prices but i would certainly take some under 3. that would be my suggestion but getting and not getting that is ur and solely ur decision chahine
SIRI has a huge float. Tough to move a stock up with this many shares outstanding.
don't forget business model :) successfulll = time to go up ex coca cola berkshire hathaway ect... chahine
if this pulled a bershire hathaway id be rollin in doe..haha
ill put all my saving in if that were the case... but they are not that big or that rich to make a difference the only thing i want to see is to see how they behave in the changing trends of the market needs.. till now the management have been excellent to picking trends and adapting there market toward it.... chahine
If you plan on holding for a very long time, like 10 years, I don't think you can go wrong. The fact of the duopoly should be enough to give you a gain right there. With only two competitors, they're very unlikely to get into a suicidal price war.
if u think of buying siri now is the close time because the price dipped from 3 to 2:30 and i still see it as dipping below 2.00 where i will be entering in it. or if it doesn't dip that low ill pick up a little above 2.00 max 2.10 chahine
This one could go to a buck. They got a LOT of debt and very low revenue.
[quote:1ad50c91de="HappyHarry"]This one could go to a buck. They got a LOT of debt and very low revenue.[/quote:1ad50c91de] Your killin me....don't say that. 8O
I'm not trying to scare you, Bob. I think if you hold for awhile you'll do okay. I just don't like the way XM is so far ahead of them.
i agree on that but the fact that xm is not making a lot of marketing noise compared to sirius is to sirius advantage in the long imo but if u see the trned of revenue, debt payment sirius has had tremendous payoff in the last couple of quarters which if u assume that the busienss had no debt with quick math i can tell u that its averaging at a price that is close to xm revenu.... well correct me if im wrong. this company needs time to flourish nothing else..... IMO at least chahine
I saw them advertising that they will be carrying NFL games in the fall. I wonder how popular this will be? I guess that one advantage is that not every football game is broadcast on TV. If you have one of home/car deals this might help to boost subscribers..
I'm getting ass kicked on this stock right now...it keeps going down. I'm gonna go down fighting or be a genius...I'm still buying shares here and there.
Averaging down can be a sick obsession. Be careful.
don't buy any in current market situation for the tech industry is getting hammered really badly.. i advice a slow market strategy... hold and wait... i see my vision of the market as after election or close to election as the time where the maret will really show its true face... time to tuck the stocks and sleep.. i would keep a good entry price around 1.50 or below that would be perfect... IMHO chahine
Companies with heavy debt loads get hurt bad on sector news.
[quote:21265ae14f="HappyHarry"]Averaging down can be a sick obsession. Be careful.[/quote:21265ae14f] Yea, when I say I'm putting $$ into it I mean just $20 here or there...nothing big.
I think you'll be okay. And the temptation is obvious. If you can be patient, this will work out. But 10 shares a week at $2 for a few years. When they finally start making a profit, hold thousands of shares and earn big. The one thing you gotta love about these guys is the duopoly. That certainly favors both companies making money.
i think this stock is a hold or slow buy right now.... i think this stock h the potential to bounce back really fast depending on the tech market return.... chahine
I still hate companies with lots of debt. They spend out good money all the time servicing the debt load.
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