Wednesday, April 25, 2007

Seeking Alpha: Satellite Radio Has No Match

Merger Speculation Hurting Sirius Stock, Long Term Outlook Still Good
Posted on Apr 25th, 2007 with stocks: SIRI

Investor Trip submits: Analyst downgrades sent Sirius Satellite Radio (SIRI) shares into a downward spiral since April 20th, 2007. Both USB and Stanford analysts downgraded SIRI shares from “buy” to “neutral”, and Wall street took quick notice. The SIRI-XM Satellite Radio (XMSR) Merger speculation causes SIRI shares to degrade in value as time passes. Investors become impatient and dump off their shares, causing a sell-off when the merger details have changed very little.
I’m Down 18% in SIRI stake
I opened half my long position in Sirius Satellite Radio Inc. at $3.20 when Sirius stock appeared to have bottomed. I made a mistake in judgement because I didn’t account for speculative merger talks in my preliminary analysis. Now, I’m down 18% on this stock, and may have to sell off my position if it reaches my 25% stop-loss limit.
Even when your analysis looks 100% correct, short term movements can disrupt your objective thinking. However, a 25% stop-loss limit helps to automate decisions and ease the pain...read more: here