Monday, November 27, 2006

Bank Of America's Jacoby Comments On XMSR & SIRI

Well, at least Jacoby is consistent (consistently negative!). I might point out a flaw in his information gathering techniques. He focuses on retail buyers...perhaps he should include all channels...stores, online shoppers/retailers, auto manufacturers, etc.

In Play, www.briefing.com , Nov 27, 7:16 AM

XM Satellite: BofA comments on near-term headwinds to XMSR and caution on SIRI (15.27 )

Banc of America sees near-term headwinds to XM Satellite (XMSR) and caution on Sirius (SIRI). The firm says their recent channel checks with their buying sources continue to indicate a much weaker 4Q sales environment than last year for satellite radio. Their belief is that checking with retail buyers is a better gauge of demand levels than store-level checks. They are modeling gross retail industry subscribers to decline by ~20% YoY and SIRI to maintain leading share. However, they say SIRI management seems to want investors to focus on a merger scenario; the firm continues to believe that such a deal is unlikely in the near term (given their view of FCC/DOJ, Democratic control of Congress, likely heavy arb pressure on SIRI, and XMSR's view that their Auto OEM strength could command a higher price in the future.

11/27/2006 08:08:00 AM

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