Thursday, August 31, 2006

USA Today Negative On Satellite Radio Stocks

I call this type of post "dodging bullets", ie, what the journalists and analysts are saying, so we know why the stocks might be up or down on a short term basis...

Sirius and XM Satellite Radio: My tune hasn't changed yet
Updated 8/31/2006 1:34 AM ET, USA Today, Ask Matt, by Matt Krantz

Q: I thought satellite radio would be a hit, so I bought shares of XM Satellite Radio (XMSR) and Sirius (SIRI). But I'm losing a ton of money. What happened?
A: When individual investors get overly enthusiastic about unproven, unprofitable small companies, there's usually an unhappy ending.
That's precisely what's happened to investors in satellite radio. After the dot-com bubble burst, investors looking for fast money scrambled into these stocks and were richly rewarded for a while. Hardly a day passed without readers asking me about the stocks.
But, as in almost every case when investors pile into young stocks, it's been ugly. This year, shares of XM Satellite are down 53% and Sirius shares are down 39%. I'm certain the investors who told me satellite radio will be the biggest thing since FM didn't expect to lose 60 cents of every dollar they invested at the start of the year...read more HERE

8/31/2006 05:17:00 AM

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