Wednesday, December 20, 2006

The SatRad Trader: Year-End Strategies

December 20, 2006

Here are some things to ponder as 2006 comes to a close: Now that the pair trade "premium" between XMSR and SIRI has evaporated, and the tax loss selling season has come and gone, where is the opportunity? With just 7 trading days left in 2006, will the shorts feel compelled to cover to lock in profits or will traders be complacent and maintain their positions? Will the potential for positive announcements in January at CES and the Auto Show reverse the downward trend, and propel the "Dogs of the NASDAQ" into next year's winners? Will SatRad, the laggards of the stellar media sector, finally be recognized for their growth as OEM installs increase and new hardware hits the market?

Although 2006 has been a disappointing year for investors in SatRad stocks, we look forward to a bright 2007 and beyond. As Apple co-founder, Steve Wozniak says, "Once you encounter it, it is a one-way street. You go through it and you don't back out."