Thursday, July 27, 2006

Reuters.com: The Tide May Be Turning For XMSR

Tuning into XM Satellite
27 Jul 2006
XM Satellite Radio airs a rough-sounding quarterly result but investors may be hearing a better tune.
Reuters.com investment channel

"XM Satellite Radio (XMSR) reported a second-quarter result this morning that at first blush was a bundle of bad news. It reduced subscriber-growth guidance and acknowledged that its latest forecast might again have to be trimmed once the company gets a handle on how ongoing hardware issues will impact sales. But But investors are sensing better days ahead. After initially dropping about 5 percent, the company's shares spiked up over 5 percent.
The company's problems have been well chronicled: high costs, federal regulatory issues concerning plug-and-play radio hardware, stock sales by executives and marketing practices, a Recording Industry Association of America (RIAA) challenge to storage of music on portable devices, a slowdown in subscriber growth, and compelling headlines from rival Sirius Satellite Radio (SIRI), which continues to bask in the glow of its launch of Howard Stern programming.
But the tide may be turning..." (link to full article: HERE)
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