Thursday, November 30, 2006
Barron's Reveals Pacific Crest's Low End Data Collecting
On Nov. 26, we posted a research blurb
by Pacific Crest indicating weak retail trends for SIRI and positive trends for XMSR. In Barrons, Eric Savitz points out that they surveyed ONLY 20 Best Buy and Circuit City stores! How in accurate could that be?! Seems pretty sophmoric to me, and certainly not worthy of a research note.
November 28, 2006, 5:08 pmSatellite Radio: Pacific Crest Says Retail Checks Good For XM, Troubling For Sirius
Posted by Eric Savitz, Barrons
Another note today on the satellite radio stocks, this time from Chad Bartley of Pacific Crest Securities. Bartley wrote today that he surveyed about 20 Best Buy and Circuit City stores during the post-Thanksgiving shopping period and found mixed results. He said shelf space has improved from before the holiday period, with spot shortages of some products such as the Sirius (SIRI)
Stilleto and the XM (XMSR)
Stilleto. He also said that “shopper demand appeared to be flat to down compared with last year.”
Bartley said his checks were “a modest positive for XM,” asserting that the company’s retail share is stable and “may be increasing slightly,” due to strong demand for its portable devices, including the Pioneer Inno and Samsung Nexus, and attractive pricing. He added that “the sentiment of salespeople seemed to be incrementally more positive for XM than during previous checks this year.”
Bartley says his checks of retail stores and online retailers increase his concern that fourth quarter expectations for Sirius are “too high.” Sirius has guided to 1.18 million net subscriber addition in the quarter, versus 1.14 million a year ago; his own estimate is for 1.06 million.
In today’s trading, XM fell 16 cents to $14.28; Sirius gained 5 cents to $4.17....read more: here
11/30/2006 07:27:00 AM
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