What Cramer Said Tonight on Mad Money

In case you missed it, the link to the video replay is Here

Cramer's 'Mad Money' Recap: A Vote for Stocks
By TheStreet.com Staff11/8/2006 8:01 PM EST

Next, Cramer evaluated Sirius (SIRI) and spoke with CEO Mel Karmazin. Karmazin said SIRI could be free cash-flow positive in 2007. Cramer: SIRI is going up, it's done treading water and is a Buy.

Mel and Howard
"On Wall Street, nothing makes players happier than growth" and one stock that has growth is Sirius Satellite Radio (SIRI - news - Cramer's Take - Rating), Cramer told his viewers.
Cramer welcomed Sirius CEO Mel Karmazin to the set and asked him how he brought his acquisition cost down 23%.
"It's what we said would happen," Karmazin said. "As we get more and more volume out there and subsidies go down, we're very much on track to get it down."
When Cramer asked if bringing in Howard Stern worked, Karmazin said, "We had 600,000 subscribers on the day he was announced and now we have 5.1 million."
If you listen to Stern, he says it's because of him, and Karmazin said he's not going to disagree with Stern.
"All we needed was a million incremental subscribers to make Howard pay for himself and he did," Karmazin continued.
In response to Cramer's next question, Karmazin said getting Nascar "is a very big deal."
The deal starts in January and will last for five years," he said. "We think it is a big driver, and coming off the holiday season, it will be a big catalyst for the company."
"At this point, it is quiet at retail," Karmazin said. "The holiday season is going to be a gangbusters quarter." Karmazin said he doesn't have any reason to believe the holiday season will not be big for Sirius. But "we have a lot of work to do from this point to the end of the year to hit our number," he said.
"We started four years ago, and in that short period of time, we will have grown to be the third-largest satellite radio company," he said.
Whereas, if people take a look at Comcast (CMCSA - news - Cramer's Take - Rating), it has been around for 40 years, Karmazin said.
When asked about the possibility of a deal with XM Satellite Radio (XMSR - news - Cramer's Take - Rating), Karmazin said that while he believes "there is value creation by putting two companies together," Sirius doesn't need to merge with XM Radio at this point.
"I'm interested in building a long-term value for our company and am open to anything that's in our shareholders' best interest," he said. "We don't need to do a deal, and don't know if we ever will do a deal." ...read more: here

11/08/2006 10:02:00 PM

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