Tuesday, October 31, 2006

What A Surprise! RealMoney.com Negative On Sirius (Yesterday)

October 31, 2006

Stocks Under $10

Sirius Reservations

By Frank CurzioRealMoney.com Contributor10/31/2006 11:08 AM

Editor's note: This Stocks Under $10 alert was originally sent to subscribers Oct. 30 at 1:34 p.m. EST. It's being republished as a bonus for TheStreet.com and RealMoney.com readers.

It seems like just yesterday that Howard Stern announced he was leaving terrestrial radio to begin broadcasting his show on commercial-free Sirius Satellite (SIRI) . Sirius shares traded up to $8 in December 2005 on the news, but then quickly began a downward trend to their current level around $3.79. But even at this price, are shares worth buying?
At the current price Sirius still has a market capitalization of $5.4 billion, so don't let the low price of the shares fool you. Sirius is still a big company and has one of the largest market caps of stocks in the under $10 universe. Also, the company's debt is more than $1 billion, and analysts do not expect Sirius to make a profit until after 2008.
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