Friday, July 14, 2006

Yesterday's Culprit: Cramer

Yesterday's fall was attributable to a few things (ie Ford cutting it's dividend, war threats in the Middle East, soaring oil prices), but the plunge accelerated when Cramer made the comment below on his radio show.

Perhaps Cramer does not understand that:

1. At this point in their business cycles (ie, low market penetration), competition is positive for both companies as it heightens interest and increases consumer awareness;

2. The chances of FCC approval are slim to none;

3. Terrestrial radio might have a few objections;

4. Their technologies are incompatible; no cost savings on that front.

Back to Business School, Jim...?

RealMoney Radio Recap: Fear and Loathing
By TheStreet.com Staff
7/13/2006 2:46 PM EDT
"Although Sirius Satellite Radio (SIRI - news - Cramer's Take) has met projections and is much better company than it was, Cramer said because of XM Satellite Radio (XMSR - news - Cramer's Take), there is too much competition in the area unless the two companies merge."