Thursday, April 26, 2007

New investors - Positive News - And Shorts

April 26, 2007

With XM reporting a decent quarter, one would think that all eyes will shift to Sirius at this point. However, this in not the case. Instead all eyes will now be shifting to the trading action this afternoon, tomorrow and Monday.

XM’s quarter showed numbers that illustrate that the company is very viable, and that they can continue growth. Those that carry a negative sentiment are now rethinking their position. Those that are short are now wondering what to do. Do they cover, or do they believe that this will all settle down going into the Sirius call?

In my opinion these equities will see some very strong volume, and the recent pricing activity gives strength to the equities. It has been my opinion for quite some time that a lot of people have been sitting on the sidelines. If that group of people decide that now is the time to get into SDARS, it has potential to cause a run.

In recent months, any positive momentum was quickly stifled by those that were on the short side of the equation. With SDARS beat up substantially already, the shorts have to begin to wonder how much room is left in their position. Realistically speaking, these companies have value, so room to the downside can get squeezed quickly.

Investors should watch volume and price action closely going into the Sirius conference call.

4/26/2007 11:55:00 AM

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