Sirius XM (SIRI) is the largest satellite radio company in United States. Sirius and XM merged in July 2008 to form Sirius XM Satellite Radio Inc. The company offers over 180 channels comprising of commercial free music, sports, talk shows, news stations amongst others. Sirius XM radio channels are mainly available in automobiles but can also be accessed over the Internet or through home stereos by using various accessories. The firm's satellite radios are primarily distributed through automakers, retail locations and through its website.

Sirius XM has ties with major automobile manufacturers such as Ford (F), General Motors (GM) and Toyota (TM). This helps drive its presence in the U.S. automobile space. In addition satellite radio services are also offered to customers of certain rental car companies.

Continue reading Coverage Launch: Sirius XM Radio

Coverage Launch: Sirius XM Radio originally appeared on BloggingStocks on Mon, 14 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Briefly Celebrating DJIA 10,000 (MSG, STT, SIRI, FDO, BA, BGP, EMC)

Closing Bell: Briefly Celebrating DJIA 10,000 (MSG, STT, SIRI, FDO, BA, BGP, EMC) originally appeared on BloggingStocks on Wed, 07 Jul 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Sirius XM Radio: Buy or Sell?

Sirius XM Radio: Buy or Sell? originally appeared on BloggingStocks on Wed, 07 Jul 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The Chase Continues (SNTS, PRX, VLO, WMT, SIRI, UPS, YUM)

Closing Bell: The Chase Continues (SNTS, PRX, VLO, WMT, SIRI, UPS, YUM) originally appeared on BloggingStocks on Thu, 15 Apr 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Sirius XM Swings to Profit

Sirius XM Swings to Profit originally appeared on BloggingStocks on Thu, 25 Feb 2010 09:50:00 EST. Please see our terms for use of feeds.

It is being reported that Sirius XM is preparing for bankruptcy and this could be the week it happens.

After reading numerous stories about Sirius XM Radio (NASDAQ: SIRI) posted by my colleagues here and elsewhere, and tossing in my own two cents (see GM/Chrysler or Sirius/XM: Two losers don't equal a winner and Sirius and XM: Two losers -- A follow-up), I was pondering what, if anything, might have been missed by analysts and investors alike that has hurt the success of this company. It may be something as simple as misjudging the size of the market.

Continue reading Sirius's problem: A niche business with broad market expenses

Sirius's problem: A niche business with broad market expenses originally appeared on BloggingStocks on Mon, 16 Feb 2009 10:40:00 EST. Please see our terms for use of feeds.

The stock market is tough enough to navigate without having to deal with roadblocks that have nothing to do with corporate execution of a business plan or normal supply-and-demand dynamics for equity securities.

We make an investment on reasonable assumptions and take the risk that such assumptions pan out. What we can't do is foresee events that are totally outside of the control of the company, economy, or ourselves. For example, if we buy a stock of a company that utilizes acquisitions as part of its strategy, we can safely assume from past examples that the government will approve or disapprove such acquisitions in a reasonable amount of time.

Continue reading Blame Uncle Sam for the demise of Sirius

Blame Uncle Sam for the demise of Sirius originally appeared on BloggingStocks on Thu, 12 Feb 2009 18:40:00 EST. Please see our terms for use of feeds.

Sirius XM (NASDAQ: SIRI) is up against debt payments that its management has been saying would not be a problem.

According to The Wall Street Journal, "Sirius XM Satellite Radio Inc. is facing an important test of its viability this month: how it handles $174.6 million in debt coming due Feb. 17." Since the company has not reported its fourth quarter, no one knows for certain how much cash Sirius has. More debt payments are due later in the year.

Could the debt problem this month push Sirius into Chapter 11? It is impossible to tell, but the obligation has not been renegotiated or replaced with new debt.

Continue reading For Sirius (SIRI), chapter 11 looms

For Sirius (SIRI), chapter 11 looms originally appeared on BloggingStocks on Mon, 02 Feb 2009 09:20:00 EST. Please see our terms for use of feeds.

Sirius XM Radio

Continue reading Sirius XM shareholders OK reverse stock split -- it's not going to help

Sirius XM shareholders OK reverse stock split -- it's not going to help originally appeared on BloggingStocks on Fri, 19 Dec 2008 09:39:00 EST. Please see our terms for use of feeds.

This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

There have been big hopes for all the nominees in this category at one time or another, but they've also suffered from questionable management moves of various sorts. So what's to root for in any of these companies?

Circuit City was founded in 1949; back then it was known as Wards Company. The big-box format and Circuit City name came as the result of a series of retail experiments, and became official in 1984. The company was listed on the New York Stock Exchange in the same year. In 1991, the company established a bank to operate its private-label credit card, and later offered a co-branded Visa. Big-box used car retailer CarMax (NYSE: KMX) was also owned by Circuit City at one point. In 2005, the company's board rejected a buyout offer; the company was worth a reported $1 billion then. The next year, Philip J. Schoonover became chairman, and ... well, the rest is history. Circuit City is now in Chapter 11.

Citigroup (NYSE: C) was formed in 1998 from one of the largest mergers in history: banking giant Citicorp and financial conglomerate Travelers Group. The company holds over 200 million customer accounts in more than 100 countries, and includes the investment services brands Smith Barney and Primerica. The company owns prominent, renowned buildings in Manhattan and Chicago, and also won naming rights to the new ball park of the New York Mets. But it was the subprime mortgage crisis that was Citigroup's undoing, resulting in the need for the recent federal bailout.

Continue reading Best & Worst in Money 2008: Struggling company we're rooting for most

Best & Worst in Money 2008: Struggling company we're rooting for most originally appeared on BloggingStocks on Fri, 05 Dec 2008 10:40:00 EST. Please see our terms for use of feeds.

I've known for some time the risks inherent in owning Sirius XM Radio (NASDAQ: SIRI), but never in my right mind did I think the company would fail, leaving shareholders with nothing but a worthless stock certificate.

And yet here we are today with SIRI trading for 25 cents per share and a market capitalization of less than $800 million. Investors are expecting the worst with SIRI. All that remains is pure speculation on survival or failure.

It really comes down to that simple question: Will SIRI make it?

If the answer is yes, then investors can still reap a tremendous reward. If the answer is no, investors will lose everything.

How did we get to this point? The answer is quite simple. Destructive competition between two competitors in a race for supremacy that never did materialized resulted in cost structures that kept pushing profits down the road.

When it was realized that the industry could potentially lose both entities, a merger was announced. Oh, but wait, a government supposedly looking out for the interest of customers dragged its heels.

Losses mounted while both companies waited and waited and waited.

Reluctantly, the government finally approved the deal, but is it too late?

Continue reading Can Sirius XM Radio (SIRI) survive?

Can Sirius XM Radio (SIRI) survive? originally appeared on BloggingStocks on Wed, 12 Nov 2008 12:45:00 EST. Please see our terms for use of feeds.

Okay, let me state clearly at the beginning here that Sirius XM (NASDAQ: SIRI) closed on Monday at $0.27 per share. Right from the start, you know we're talking about a risky stock -- a lottery ticket, as they say. And since our subject is the result of a recent merger, there's a lot of pro forma data located in the press release detailing the satellite-radio company's Q3 performance.

According to that pro forma data, revenues increased 16% to almost $613 million. The pro forma net loss was halved to $0.09 per share. It's funny, because when you look through the numbers, you almost feel compelled to come away with a good feeling about the story. Total subscribers increased 17% on a year-over-year basis, subscriber-acquisition costs decreased, cost synergies are manifesting themselves, and projections for free-cash-flow generation seem to be attractive.

However, one has to realize that an attractive cash-flow statement isn't around the corner. Positive free cash flow should begin on an annual basis in 2010. Plus, Sirius XM management must deal with refinancing its debt. And it did make a $4.8 billion write-down relating to goodwill impairment. Also, the economic problems of auto manufacturers such as Ford (NYSE: F) and General Motors (NYSE: GM) are not helping Sirius XM. If car sales are down, then adoption of the satellite-radio company's programming is challenged. It's a simple relationship.

Continue reading It's probably best to stay away from Sirius XM, but...

It's probably best to stay away from Sirius XM, but... originally appeared on BloggingStocks on Tue, 11 Nov 2008 09:28:00 EST. Please see our terms for use of feeds.

Sirius XM Radio unveils more programming options originally appeared on BloggingStocks on Mon, 06 Oct 2008 15:18:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Dow up a whopping 331; ADM falls, Lehman rises

Closing Bell: Dow up a whopping 331; ADM falls, Lehman rises originally appeared on BloggingStocks on Tue, 05 Aug 2008 16:14:00 EST. Please see our terms for use of feeds.

Sirius acquisiton of XM to finally get FCC approval originally appeared on BloggingStocks on Wed, 23 Jul 2008 15:59:00 EST. Please see our terms for use of feeds.

Three of the commissioners of the FCC have voted on the Sirius (NASDAQ: SIRI) merger with XM Satellite (NASDAQ: XMSR). Two have voted in favor, and one has voted against. That leaves two other votes. In other words, the deal could still be killed.

One of the remaining commissioners has indicated that he would vote for the merger if the companies would agree to a six-year price cap on their services. According to The Wall Street Journal, "The offer was viewed as an attempt to start negotiations, but the companies so far are showing little interest in haggling."

Is it any wonder? The most recent earnings reports from the two companies indicate that, while their losses are getting smaller, their subscription growth rates are slowing. Each firm has more than $1 billion in debt and neither has ever had an operating profit. In other words, if the companies cannot raise their rates the chances of them becoming profitable are significantly curtailed.

The FCC may be putting Sirius and XM in an almost impossible position. If they are willing to make moves which could hurt their earnings longterm, they may get the votes they need for approval. If not, the merger could be scuttled.

The future of satellite radio is now based on two bad outcomes.

Douglas A. McIntyre is an editor at 247wallst.com

Sirius deal with XM could still be killed originally appeared on BloggingStocks on Wed, 23 Jul 2008 09:22:00 EST. Please see our terms for use of feeds.

• DJIA 11,496.24 (+49.58)
• S&P500 1260.65 (+0.33)
• NASDAQ 2282.78 (-29.52)
• 10YR T-Note 4.081% (+0.043%)
• 52-WEEK LOWS
• Top Analyst Upgrades
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Continue reading Closing Bell: Great recovery continues, except for tech

Closing Bell: Great recovery continues, except for tech originally appeared on BloggingStocks on Fri, 18 Jul 2008 16:13:00 EST. Please see our terms for use of feeds.

• DJIA 12,549.00 (+69.37)
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• NASDAQ 2480.51 (+35.84)
• 10 YR T-Note 3.921%, +0.09%.
• 52-WEEK LOWS saw 3 DJIA components today.
• TOP 10 ANALYST CALLS

Continue reading Closing Bell: Buyers come out of the sewers to save the day

Closing Bell: Buyers come out of the sewers to save the day originally appeared on BloggingStocks on Tue, 27 May 2008 16:27:00 EST. Please see our terms for use of feeds.

Is Sirius Satellite Radio a buy? Yes apparently originally appeared on BloggingStocks on Wed, 07 May 2008 17:20:00 EST. Please see our terms for use of feeds.

Either short sellers don't think a merger between Sirius (NASDAQ: SIRI) and XM Satellite (NASDAQ: XMSR) will happen, or they don't believe that the deal will save the two debt-laden companies. Short interest in Sirius rose 20.2 million shares for the period ending April 15 compared with March 31. Total shares sold short hit 157.9 million. Shares short in XM also pushed up 6.3 million to 22.7 million.

The bets may be smart ones. The delay in approving the deal at the FCC has probably made it less likely that the merger will get the green light. A number of members of Congress have loudly protested that the new company would be a monopoly, They reason that a new entity would eventually raise rates sharply because there will be no competition to dampen prices.

The core problem with the merger may be more profound. Subscriber growth rates at the two companies are slowing. Both also have negative net income. At this point, neither company has predicted when it might make a profit.

The biggest burden that the companies have is their debt. Each has over $1 billion in long-term obligation to repay bonds and loans. In a poor credit environment, it is hard to see that paper getting refinanced at better rates.

A new company, even with some cost savings, could have enough debt to sink it.

Douglas A. McIntyre is an editor at 247wallst.com.

Short sellers make large bet against Sirius (SIRI) merger originally appeared on BloggingStocks on Fri, 25 Apr 2008 09:45:00 EST. Please see our terms for use of feeds.