Tuesday, February 06, 2007

Motley Fool: Is Sirius Getting The Short End Of The Stick?

Why does Everyone Hate Sirius?
Motley Fool, February 6, 2007, By dstnewman, 2/6/2007

Before I start, don't get me wrong, but I like XMSR as an investment right now as well. I am speaking from the shear mechanics of WallSt. I just don't understand it. XM receives bad news (that it is going to court); SIRI drops. XM receives good news (that it renewed two contracts); SIRI drops.Did anyone take into account that NEITHER of these two pieces of news negatively affects SIRI in any way shape or form? Yet the stock has dropped nearly 13% in the past three weeks. The XM lawsuit does not affect SIRI in any way, because regardless of the outcome, SIRI already has an agreement with the music companies for the portable recording of music. Not only that, these agreements have already been priced into SIRI quarterly income figures. XM on the other hand, if they loose the lawsuit, will have to pay a settlement PLUS obtain an agreement for a price with the music companies, which I'm sure will be higher than SIRI's, all of which has not been priced into anything. So why does this hurt SIRI?...read more: here

Labels: motley fool, sirius, xm