Nate Davis...He Ain't No Mel!
It's a good thing that XMSR is shuffling management, although Nate Davis is no Mel Karmazin. Panero has been noticeably absent as the face of XMSR (maybe it's all those class action lawsuits). Perhaps this is a way, albeit not very bold, to shift some of the focus/responsibilities away from those who are associated with the recent management missteps.
Here is Bank of America's (infamous) analyst Jonathan Jacoby's take as posted in
www.forbes.com:
Market ScanNew Exec Seen As Positive For XM
R.M. Schneiderman, 07.25.06, 11:46 AM ET
XM Satellite Radio's new leadership could help the company recover from recent missteps, according to Banc of America Securities.
On Monday, XM announced that it has hired Nate Davis to the new position of president and chief operating officer. Previously, Davis was COO of XO Communications. "XM's new management structure is a minor positive for the stock, in our view, as it adds a senior operational executive at a time when the company is clearly struggling with execution," said Jonathan Jacoby, an analyst for the research firm.
Davis's appointment "effectively creates a system of checks-and-balances" with chief executive officer Hugh Panero, according to the analyst. While Panero will continue to directly oversee programming, sales, business, legal affairs and public relations, Davis will now control the company's retail, original equipment manufacturer marketing, product development, engineering, customer service, finance and accounting divisions, the analyst said.
Banc of America maintained a "buy" rating on the stock and a target price of $22, say the stock will likely outperform Sirius Satellite Radio over the next six to 12 months.
7/25/2006 02:07:00 PM
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