Analyst Comments This Morning, AmTech
Analysts are expecting disappointing metrics when earnings are announced for XMSR (July 27th) and SIRI (Aug 1). However, could it be that these negative expectations already "baked" into the stock prices? Will it be a case of "sell the rumor" and "buy the news" once earnings are finally announced? Will the earnings release trigger a relief rally and creating a buying opportunity into the robust holiday season?
Here is what AmTech had to say this morning:
"Live In Play
24-Jul-06, 09:48
Previews on XMSR and SIRI: Remain Cautious on Both Stocks - AmTech
AmTech notes that XMSR reports this Thursday and SIRI reports next Tuesday. Declining year-year growth in retail net adds appears to have turned negative this quarter. The impact of FCC inquiries on the miss for XMSR and current status will be important for both stocks. SIRI filed an 8-k last week indicating certain employees instructed suppliers to continue production of non-compliant radios. It appears SIRI decided to ignore the FCC until after Father's Day. Firm lowers their ests for both cos, with a more aggressive cut for XMSR and only slightly for SIRI. Firm expects XMSR will guide-down. Depending on impact of FCC compliance issues, SIRI may either reiterate guidance or temper expectations somewhat. As mix shifts from retail to OEM firm would like to see more disclosure from SIRI, who is very aggressive in counting subs. Typically 15-months or more before OEM promotions choose to become self-paying. SIRI does not disclose how many subs are in promotional periods or the rate of conversion into paying subs."
7/24/2006 09:41:00 AM
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