XM Satellite Radio Holdings, Inc. (NYSE:XMSR) got a nice run-up in its stock yesterday. The company's shares moved from $14 to almost $14.80 and traded above $14.90 for part of the day. The move added over $150 million to XM's market cap, which now stands just shy of $4 billion.
The uptick in the stock seemed to be based on an announcement that XM has launched its new GPS in some Nissan and Infiniti cars. The navigation system is nice, but the fact that it will be offered in Nissan Altima's is hardly big news.
Satellite radio investors have developed the kind of desperate behavior that is usually exhibited by people who have been without water in the desert for several days.
XM's stock is still down from a 52-week high of $32 and even improved earnings have barely moved the stock.
The market appears to believe that satellite radio is last year's next big thing and Wall St. has moved on to things like the iPod and Xbox.
The question now is whether the two satellite radio companies can do anything to get the interest of investors back. Shy of a sharp acceleration in subscriber growth rates, probably not.
Douglas McIntyre is a partner at 24/7 Wall St.











Reader Comments (Page 1 of 1)
11-16-2006 @ 9:43AM
H BROWDER said...
you are wrong-satellite radio will continue to grow-I have both -best thing I ever bought-when you buy car now you get satelite most of time as well
11-16-2006 @ 11:33AM
James Mosey said...
Have you ever used satellite radio? The reception is great everywhere you go. The choices are vast and you do not have to program an ipod to listen to a variety of music and news. Like Warren Buffett says "Buy what you know."
11-16-2006 @ 11:54AM
pauljbokowy said...
SATELLITE RADIO HERE TO STAY.Its like anything else,once you try it you will love it.I still remember when I bought my first car,it came without power windows,then I bought a new car with full power and I know I couldnt go back.Cable samething,how many company offer cable and look at what cable cost for a year between 1000 to1500 ayear.I have SIRIUS SATELLITE,this cost is 150 a year and well worth it so sit back and relax,or put your money in satellite radio because it is here to stay.PS in the years to come we might have satellite radio coming through are cell phones.
11-16-2006 @ 5:23PM
bobbyrphillips said...
I love satellite radio. The recaption is great and you keep the same station traviling from state to state.
11-16-2006 @ 8:15PM
oscar brilliant said...
At present, I love satellite radio. However, 2 things worry me. One is, while I think Howard Stern is the "king of all media", his use of profanity,especially using the "F" word unnecessarily and making a big thing of bodily functions, turns me off. Also, I am disturbed by the large amount of advertising, especially on the "Left" channel. It appears that there is as much advertising as news! But the music without commercials is thing I love mostly.
11-17-2006 @ 8:24AM
Gloria Debartolomio said...
Of course subcriber growth will BOOM for BOTH (but more for Sirius) between now and the end of January 2007 (fourth quarter)--you DUMBKOFF!
11-17-2006 @ 5:33PM
gary said...
I've had sirius since they first come out it has improved so much i now have it in all my cars my trailer when i go camping and even my home. i never listen too radio anymore once you try it you'l like it. the more people know about this it will grow .
11-20-2006 @ 9:08AM
T. said...
Wall Street has a growing blind spot for media related companies and can't get over the fact that the 20+ return on profits from the mid to late 90s was the exception rather than the rule. It also can't see the future all that well because its stuck in the present. So here's a company thats about the future of media and Wall Street hates it. No real surprise. Just hang onto the stock and wait for the future to come to you. Wall Street will love Sirius in about five years.
11-21-2006 @ 6:33PM
Will McCarthy said...
I bought Sirius stock a year ago and I've done nothing but watch it go down ever since. What is it going to take for this company to produce positive results?
11-21-2006 @ 1:56PM
Boris J Osyguss said...
Bill Gates Mentions Sirius as a company that has learned their lesson. This may show positive interest from Bill. Does this mean that Sirius Business growth is inevitable? I think so.
11-22-2006 @ 3:21PM
David Thomas said...
I purchased Sirius Satellite Radio last January basically for Howard Stern. I've never looked back !
I never listen to regular radio any more. Surprise..I'm in my 50's and fairly conservitive !!
11-23-2006 @ 12:30PM
joe corda said...
have Sirius in 4 cars and boom box, gave it to my son for Christmas. I don't have to deal with tapes, Cd's, programing the Ipod and the retarded commercial radio. Like cable TV, satellite is the future.