Wednesday, September 27, 2006

Bank of America: Still Loyal To XMSR Through Thick And Thin!

Bank of America: Still pushing XMSR over SIRI, no matter what!

Seriously, doesn't Jacoby have anything else to do besides put out the same reports weekly?!

The last note that mentions the long XM, short Siri pair trade was as recent as Sept 18th (LINK). Today's release is worded curiously...he thinks that there is risk to XM's net adds, says Siri has retained more market share, but still recommends going long XM and short Siri. Go figure...!

XMSR/SIRI pair trade still has legs - BofA
(www.briefing.com, In Play)

Banc of America sees roughly 10% risk to their 3Q net-addition est of 325k for XM Satellite (XMSR) given continued sluggish retail sales for the industry and evidence that Sirius Satellite (SIRI) has retained a bit more share. They think SIRI should meet or beat their 449k net-addition est (possibly by 20k), which it may announce shortly after XMSR reports its figures. Firm says they still think the pair trade has legs because as the business evolves into an OEM driven model, XMSR is better positioned. Also, they see risk to SIRI's '06 sub guidance of 6.3 mln..