Thursday, August 17, 2006
SSG Is Interested In Your (Sirius) Thoughts...
Despite a spate of positive news (*), Sirius is touching 52 week lows. What’s bugging investor perception? If you want to share your (legitimate) thoughts with our readers, please e-mail me at
ssgfive@yahoo.com(*) Here are some of the most recent positives:
1. FM modulator issues with FCC mostly resolved. Targeted hardware back in production, inventory restocking at retailers
2. Sirius suppliers doing well. Directed Electronics, DEIX, stock price up 31% since raising 2006 guidance, resumption of manufacturing of Sirius hardware, confirming progress with FCC on FM modulator issue
3. Ford (F) stock up 36% since restructuring announcements; Ford will have greater financial flexibility and will introduce new products to ramp up sales
4. Radio Shack (RSH) stock up 33% from 52 week lows, on expectations of restructuring and rebranding
5. Confirmation of long awaited availability of Sirius wearable/portable device, the Stiletto, by end of summer, indicating at least partial resolution of RIAA issue
6. Successful resolution of CBS-Stern lawsuit, including rights to Stern “classic” tapes. Promotional opportunities anticipated to counter XMSR’s "Oprah" push in September
7. NFL season commencing, providing ancillary promotional opportunities into holiday season
8. NASCAR jumps to Sirius in January 2007. Apparently, this audience is massive and loyal. NASCAR brand bolstered by hugely successful film "Telladega Nights". More promotional opportunities for Sirius for upcoming holiday season
9. Q2 earnings did not disappoint, management met or exceeded expectations, raised subscriber guidance from 6.2 to 6.3 million for 2006, reiterated CFBE by 2007, possibly Q4 2006
10. Competitor XMSR up 20% from 52 week low. Despite differences, usually the two companies trade in tandem
11. Even Cramer has restrained his negative comments recently (previous position: sell, sell sell or don’t buy, don’t buy, don’t buy!)
12. Recent confirmation of long anticipated (and previously delayed) rear seat video to be launched in 2006
So what’s bugging the stock? If you have any thoughts or insights you would like to share, please forward them to me at ssgfive@yahoo.com8/17/2006 04:27:00 AM
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