Wednesday, December 20, 2006

Motley Fool: Negative on XM Today

4 Stocks to Sell in 2007
Rick Aristotle Munarriz, The Motley Fool, December 20, 2006

Have you finished your holiday shopping? I hope so, because I've got some regifting ideas for you. These are stocks you don't want sitting under your tree, because the year ahead may prove challenging to their already-buoyant share prices.
These stocks aren't all dogs. At least one is an active newsletter recommendation (so your mileage may vary). One has shot up 65% over the past five months. One is a perennial market darling, while the other has been sent to the doghouse. I can almost bet that you'll disagree with me vehemently on a few. That's OK. A little balance in opinion will do your due diligence some good. If I'm wrong, you win. If I'm right, you won't be blindsided...

...XM Satellite Radio (Nasdaq: XMSR) Yes, XM's stock is up 65% since bottoming out this summer -- but why are the fundamentals singing a different tune? The former Motley Fool Rule Breakers recommendation has had to hose down its year-end subscriber targets three times this year, and retail sales are slumping. The few sales taking place at the consumer-electronics superstores seem to be favoring rival Sirius (Nasdaq: SIRI) and its sleek Stiletto model, yet even Sirius has talked down the industry's near-term performance.
A lot of the air in XM's shares lately stems from buyout speculation that may never come to fruition. Even if a deal is struck, it may not get regulatory approval. I'm guessing that the Grinch may stick around until attractive add-ons like backseat video materialize in 2008 or 2009....read more: here

12/20/2006 03:28:00 PM

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