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XM Satellite (XMSR) subscriber numbers growing

Brent Archer — Mon, 21 Jul 2008 12:57:00 EST

Filed under: Major Movement, Earnings Reports, Good news, XM Satellite Radio (XMSR), Options, Technical Analysis

XM Satellite Radio (NASDAQ: XMSR) shares are trading higher today after the company announced it gained 322,000 new net subscribers during the second quarter, 17% higher than the same quarter last year. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on XMSR.

After hitting a one-year high of $16.44 in November, the stock hit a one-year low of $6.78 earlier this month. XMSR opened this morning at $8.75. So far today the stock has hit a low of $8.69 and a high of $9.02. As of 12:15, XMSR is trading at $9.04, up 48 cents (5.8%). The chart for XMSR looks bearish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $6 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in just two months as long as XMSR is above $6 at September expiration. XM would have to fall by more than 33% before we would start to lose money.

XMSR hasn't been below $6.75 at all in the past year and has shown support around $7.25 recently. This trade could be risky if the company's earnings (due out late this month) disappoint, but even if that happens, this position could be protected by the support the stock might find at its year low at $6.80, which is has bounced up from recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in XMSR.

XM Satellite (XMSR) subscriber numbers growing originally appeared on BloggingStocks on Mon, 21 Jul 2008 12:57:00 EST. Please see our terms for use of feeds.

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Option Update: XM Satellite Radio volatility flat into FCC vote

Paul Foster — Tue, 17 Jun 2008 08:35:00 EST

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio (NASDAQ: XMSR) - The FCC Chairman Kevin Martin recommended approval of the Sirius Satellite (NASDAQ: SIRI)-XMSR merger. The FCC Commissioners could rule on the proposed merger soon.

XMSR and SIRI announced a merger of equals in February of 2007. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.

XMSR July option implied volatility of 76 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: XM Satellite Radio volatility flat into FCC vote originally appeared on BloggingStocks on Tue, 17 Jun 2008 08:35:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up: Hedge fund industry dominated by big firms

Laurie Pasternack — Tue, 17 Jun 2008 08:00:00 EST

Filed under: Newspapers, Magazines, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Goldman Sachs Group (GS)

MAJOR PAPERS:

The Wall Street Journal reported that after years of rapid grows, many hedge funds are shutting their doors or merging with others, as expansion has dramatically slowed. As a result, the industry is being dominated mostly by big firms, such as Och-Ziff Capital Management Group LLC (NYSE: OZM), D.E. Shaw & Co., and Paulson and Co.
Shares of Ctrip.com International Ltd (NASDAQ: CTRP), China's major Internet travel booker with about 58% of the country's online travel business, have dropped about 30% in the last six weeks alone creating a possible buying opportunity, according to the Wall Street Journal's "Heard in Asia". Travel in China is expected to grow solidly in the long-term and Ctrip.com said it expects revenue to grow 30% for the three months ending June 30 from a year earlier.
In a move that could potentially usher in a new phase in the credit crunch, the Financial Times reported that The Goldman Sachs Group Inc (NYSE: GS) is said to be close to finalizing a plan to restructure a $7B investment vehicle formerly run by Cheyne Capital, a London-based hedge fund.

OTHER PAPERS:

The Washington Post reported the proposed merger between XM Satellite Radio Holdings Inc (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) was under fire yesterday by senior members of the Congressional Black Caucus, who said the deal does not provide enough opportunities for minority-owned programming.

Newspaper wrap-up: Hedge fund industry dominated by big firms originally appeared on BloggingStocks on Tue, 17 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

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Short sellers: A gamble that Sirius (SIRI) merger will be approved

Douglas McIntyre — Wed, 11 Jun 2008 10:00:00 EST

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

Short sellers are guessing that the merger between Sirius (NASDAQ: SIRI) and XM Satellite (NASDAQ: XMSR) will be approved in the fairly near future. Short interest in Sirius fell 29.1 million shares between May 15 and May 30 to 141.3 million.

There are several reasons for the change in sentiment. One is simply the passage of time. The FCC has had the matter for over a year-and-a-half and FCC chairman Kevin Martin recently said a decision would come soon.

Another reason the merger may get green-lighted is that Sirius is probably willing to give up some of the merged company's spectrum for the government to auction off in the hope of creating yet another satellite radio company.

The final and best reason that the FCC may decide to let the marriage move through is that satellite radio is not the big consumer electronics boom that it was a few years ago. There are too many programming competitors in the market. Sirius and XM cannot even make money. There is, in fact, the issue of whether they can survive at all.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Short sellers: A gamble that Sirius (SIRI) merger will be approved originally appeared on BloggingStocks on Wed, 11 Jun 2008 10:00:00 EST. Please see our terms for use of feeds.

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Motley Fool's 5 stocks under $10 to consider for your portfolio

Eliza Popescu — Wed, 21 May 2008 14:14:00 EST

Filed under: Forecasts, Competitive Strategy, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Economic Data

Some investors shy away from low priced stocks., but Rick Aristotle Munarriz thinks some stocks under $10 have nice growth potential. Here's his list of five such stocks to consider.

Alvarion Ltd. (NASDAQ: ALVR) is currently at $8.98; its development trajectory looks impressive if we take into account the fact that it has gained 53% over the past two months. In addition, its quarterly earnings results and its cash-rich balance sheet point to further growth.
Sirius Satellite Radio Inc. (NASDAQ: SIRI), currently at $2.72, is showing a lot of potential as its subscriber base continues to increase, while reducing its quarterly losses. Munarriz also cites the company's advantages tied to its pending merger with competitor XM Satellite Radio (NASDAQ: XMSR).
Builders FirstSource Inc. (NASDAQ: BLDR) is currently at $7.48, down from $23 two years ago. Despite the fact that the company's quarterly earnings numbers weren't so good, BLRD was able to gain market share and is nicely positioned for a recovery in the next couple of years.
Internet Brands Inc. (NASDAQ: INET), currently at $6.48, is seen as a good investment in the current dot-com world. Last week's $1.8 billion decision by CBS Corp. (NYSE: CBS) to acquire CNET Networks (NASDAQ: CNET) could be a sign that we should consider Internet Brands and its high traffic volume. Internet Brands has several pages that have high advertising potential, and should see this pay off in the future, or lead to a possible buyout by one of the major players.
Natuzzi (NYSE: NTZ) is currently trading at $3.77. The company is facing some trouble related to its declining revenue and profit, but it is has the advantage of a lot of cash on its balance sheet.

Continue reading Motley Fool's 5 stocks under $10 to consider for your portfolio

Motley Fool's 5 stocks under $10 to consider for your portfolio originally appeared on BloggingStocks on Wed, 21 May 2008 14:14:00 EST. Please see our terms for use of feeds.

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XM Satellite Radio (XMSR) rises on higher subscriber numbers

Brent Archer — Mon, 12 May 2008 13:27:00 EST

Filed under: Major Movement, Earnings Reports, Good news, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical Analysis

XM Satellite Radio (NASDAQ: XMSR) shares are up after the company reported that its subscriber base grew 9.33 million subscribers in March, up from 7.9 million a year earlier. This comes despite the company reporting a first-quarter loss of $129.3 million, or 42 cents per share, this morning, worse than analysts' predictions of a 39 cents per-share loss. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on XMSR.

After hitting a one-year high of $16.44 in December, the stock hit a one-year low of $9.62 in January. XMSR opened this morning at $11.90. So far today the stock has hit a low of $11.70 and a high of $12.41. As of 12:30, XMSR is trading at $12.40, up $0.60 (5.1%). The chart for XMSR looks bearish and improving slightly, while S&P gives the stock a bearish 2 Stars (out of 5) Sell rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $10 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in just ten weeks as long as XMSR is above $10 at July expiration. XM would have to fall by more than 18% before we would start to lose money.

XMSR hasn't been below $10 by more than a few cents in the past year and has shown support around $11.60 recently. This trade could be risky if something about the XM-Sirius (NASDAQ: SIRI) deal goes wrong, but even if that happens, that position could be protected by support the stock might find just above $10, where it has bounced quite a few times over the past year.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in XMSR or SIRI.

XM Satellite Radio (XMSR) rises on higher subscriber numbers originally appeared on BloggingStocks on Mon, 12 May 2008 13:27:00 EST. Please see our terms for use of feeds.

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XM (XMSR) - Sirius (SIRI) merger may be close ... again

Brent Archer — Thu, 20 Mar 2008 12:44:00 EST

Filed under: Major Movement, Analyst Reports, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical Analysis

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) shares are rising today as analysts again talk up the supposed completion of the US DOJ investigation into the XM-Sirius (NASDAQ: SIRI) merger. We have heard this kind of talk regarding this deal before, so not many are getting overly excited. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on XMSR.

After hitting a one-year high of $16.44 in December, the stock hit a one-year low of $9.62 in January. XMSR opened this morning at $11.57. So far today the stock has hit a low of $11.40 and a high of $12.07. As of 11:55, XMSR is trading at $11.83, up 61 cents (5.4%). The chart for XMSR looks neutral but improving slightly, while S&P gives the stock a very negative 1 STARs (out of 5) strong sell rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $9 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 25.0% return in just one month as long as XMSR is above $9 at April expiration. XM would have to fall by more than 24% before we would start to lose money.

XMSR hasn't been below $9.50 at all in the past year and has shown support around $11 recently. This trade could be risky if the stock breaks below its year lows, but for now the uncertainty of the company's situation could keep the stock in its recent trading range between $9.50 and $15.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in XMSR or SIRI.

XM (XMSR) - Sirius (SIRI) merger may be close ... again originally appeared on BloggingStocks on Thu, 20 Mar 2008 12:44:00 EST. Please see our terms for use of feeds.

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Tuning in to the Sirius (SIRI) earnings channel

Steven Mallas — Tue, 26 Feb 2008 15:34:00 EST

Filed under: Earnings Reports, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

Sirius Satellite Radio (NASDAQ: SIRI) reported Q4 and full-year earnings this morning, and I have to say that the company, led by the famous and highly-respected CEO Mel Karmazin, tuned into some good numbers. Revenues for the fourth quarter increased 29%; for the full fiscal year, revenues jumped 45%. The net diluted loss narrowed during the quarter to $0.11 per share versus $0.17 per share in the year-ago period, and for the year, it improved to $0.39 versus $0.79.

Perhaps the best news in the earnings release is the cash-flow situation. The company's free cash flow more than doubled for Q4, coming in at $75.9 million. And, hey, it was positive, which is important to note, since this company has sacrificed free cash over the years to invest in its platform. In fact, management noted that, for the first time, the second half of the year saw positive free cash flow (equal to $8.1 million for the period). And subscriber growth was impressive -- the company gained almost 2.3 million listeners, and it ended the year with 8.3 million subscribers. People gravitate toward the various popular brands featured on the platform, which includes shows by Playboy (NYSE: PLA), Jamie Foxx, and, of course, the king of all media past, present, and future, Howard Stern. There's also a lot of sports programming to add value for subscribers, as well as an upcoming slate of health programming called "Doctor Radio."

So, why does the stock trade in the low single digits? Why is it priced so speculatively? For one thing, there is the merger issue with XM Satellite Radio (NASDAQ: XMSR). Until that goes through, investors will have to wait for further guidance on the combination of the two platforms. Also, the market is going to want to see some consistent reports of positive net income on a GAAP basis to become really excited. I like the numbers currently associated with Sirius, and I think it may offer some upside potential for risk capital. As for myself? I'm not inclined to play it just yet. I'd rather see some technical strength assert itself before jumping in.

Tuning in to the Sirius (SIRI) earnings channel originally appeared on BloggingStocks on Tue, 26 Feb 2008 15:34:00 EST. Please see our terms for use of feeds.

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Option update: XM Satellite Radio and Sirius XMSR volatility up into FCC decision

Paul Foster — Wed, 12 Dec 2007 17:02:00 EST

Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio Holdings, Inc. (NASDAQ: XMSR) recently down $1.45 to $13.19.:

XMSR and SIRI announced on 2/20/07 a merger of equals. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share. The FCC is expected to decide on the merger before the year's end. XMSR December 12.5 straddle is priced at $2.35. XMSR January option implied volatility of 143 is above its 26-week average of 66 according to Track Data, suggesting larger price risks.

Sirius Satellite Radio Inc. (NASDAQ: SIRI) recently down 21 cents to $3.28:

SIRI December 3 straddle is priced at 50 cents. SIRI January option implied volatility of 97 is above its 26-week average of 63 according to Track Data, suggesting larger price risks.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: XM Satellite Radio and Sirius XMSR volatility up into FCC decision originally appeared on BloggingStocks on Wed, 12 Dec 2007 17:02:00 EST. Please see our terms for use of feeds.

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Option update: XM Satellite and Sirius Satellite volatility up into FCC decision

Paul Foster — Wed, 21 Nov 2007 09:35:00 EST

Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio (NASDAQ: XMSR) closed at $14.06.

XMSR and SIRI announced on 2/20/07 a merger of equals. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share. The Federal Communication Commission (FCC) is expected to decide on the merger before year end. XMSR December option implied volatility of 122 is above its 26-week average of 61 according to Track Data, suggesting larger price risks.

Sirius Satellite Radio (NASDAQ: SIRI) closed at $3.48.

SIRI December option implied volatility of 88 is above its 26-week average of 59 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: XM Satellite and Sirius Satellite volatility up into FCC decision originally appeared on BloggingStocks on Wed, 21 Nov 2007 09:35:00 EST. Please see our terms for use of feeds.

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End of the world: Bob Dylan shillin' for Cadillac

Tom Barlow — Tue, 23 Oct 2007 14:30:00 EST

Filed under: General Motors (GM), XM Satellite Radio (XMSR), Marketing and Advertising

Bob Dylan's fascination with Cadillac (NYSE: GM) can be traced back to his first album, Freewheelin' Bob Dylan. In "Talkin' World War III Blues," Dylan imagines driving a Cadillac through Manhattan, declaring it's a "good car to drive, after a war."

Now, the singer has signed on to star in a multi-platform marketing campaign for the storied brand. The campaign will be tied into the Theme Time Radio Hour, Dylan's respected XM Satellite Radio (NASDAQ: XMSR) show. The theme of tomorrow's episode, the launch of the campaign, will be the Cadillac.

By now, the irony of '60s musicians cashing in on their anti-establishment image by shilling for The Man is old news. I do often wonder, though, why virtually every rock/pop song used for commercials seems to come from the '60s and '70s. Just how effective are these ancient tunes in reaching potential customers, for whom these songs are as old hat as Rudy Vallee's were in my childhood? (Yeah, I'm old.)

While Dylan has shown the courage to evolve his music gracefully, producing some of his most appealing tunes in what would be the twilight of most careers, this won't do much to enhance his image. The incongruity of attempting to use his scruffy, roots image to rebrand Cadillac seems a bit clueless. I can't imagine playing "A Hard Rain's A-gonna Fall" or a similarly mournful tune about injustice, on the CD player of a Escalade.

End of the world: Bob Dylan shillin' for Cadillac originally appeared on BloggingStocks on Tue, 23 Oct 2007 14:30:00 EST. Please see our terms for use of feeds.

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Market highlights for next week: AAPL, AMZN, MER, CFC to report Q3

Eric Buscemi — Fri, 19 Oct 2007 16:00:00 EST

Filed under: Earnings Reports, Conventions and Conferences, Apple Inc (AAPL), Amazon.com (AMZN), XM Satellite Radio (XMSR), Halliburton (HAL), Boeing Co (BA), Merrill Lynch (MER), Countrywide Financial (CFC), Lockheed Martin (LMT), Starwood Hotels Worldwide (HOT), Texas Instruments (TXN)

Monday October 22

Halliburton Company (NYSE: HAL) to report Q3 earnings; conference call at 10am
Apple Inc (NASDAQ: AAPL) to report Q3 earnings; conference call at 5pm
Texas Instruments Incorporated (NYSE: TXN) to report Q3 earnings; conference call at 5:30pm

Tuesday October 23

Lockheed Martin Corporation (NYSE: LMT) to report Q3 earnings; conference call at 11am
Amazon.com Inc (NASDAQ: AMZN) to report Q3 earnings; conference call at 5pm

Wednesday October 24

Merrill Lynch & Co Inc (NYSE: MER) to report Q3 earnings; conference call at 10am
The Boeing Company (NYSE: BA) to report Q3 earnings; conference call at 10:30am

Thursday October 25

XM Satellite Radio Holdings Inc (NASDAQ: XMSR) to report Q3 earnings; conference call at 10am
Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) to report Q3 earnings; conference call at 10:30am

Friday October 26

Countrywide Financial Corporation (NYSE: CFC) to report Q3 earnings; conference call at 12pm
PDUFA date for Adams Respiratory Therapeutics Inc's (NASDAQ: ARXT) Guaifenesin, a prescription cough treatment
PDUFA date for Sanofi-Aventis SA's (NYSE: SNY) Taxotere for induction therapy of locally advanced head and neck cancer prior to chemoradiotherapy and surgery

Market highlights for next week: AAPL, AMZN, MER, CFC to report Q3 originally appeared on BloggingStocks on Fri, 19 Oct 2007 16:00:00 EST. Please see our terms for use of feeds.

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Analyst downgrades: Process control sector, RHD, VG, CCE and RIG

Eric Buscemi — Wed, 19 Sep 2007 11:35:00 EST

Filed under: Analyst Reports, Analyst Upgrades and Downgrades, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Coca-Cola Enterprises (CCE), Vonage Holdings (VG)

MOST NOTEWORTHY: The process control sector, R.H. Donnelley, Vonage, Coca-Cola Enterprises and Transocean were today's noteworthy downgrades:

Baird reduced estimates across the board in the process control sector due to lower expectations for North American industrial and residential construction. The firm downgraded Roper Industries (NYSE: ROP), Regal-Beloit Corp (NYSE: RBC) and Baldor Electric (NYSE: BEZ) to Neutral from Outperform and AO Smith Corporation (NYSE: AOS) to Underperform from Neutral.
Goldman downgraded shares of R.H. Donnelley Corporation (NYSE: RHD) to Neutral from Buy after the company updated its 2007 guidance to reflect deteriorating trends in local advertising.
Vonage Holdings Corp (NYSE: VG) was downgraded to Sell from Hold at Soleil due to liquidity concerns.
Coca-Cola Enterprises (NYSE: CCE) was downgraded to Hold from Buy at Deutsche Bank on valuation and mixed near-term trends.
Transocean Inc (NYSE: RIG) was downgraded to Hold from Buy at Gabelli. Even though the deepwater market continues to be strong, the firm is concerned regarding the continuing weakness in the jackup market as well as the limited upside potential due to the company's ships being in use through 2009.

OTHER DOWNGRADES:

XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) were downgraded to Neutral from Buy at UBS.
Blue Nile Inc (NASDAQ: NILE) was downgraded to Neutral from Buy at Suntrust.
Citigroup downgraded shares of CheckFree Corporation (NASDAQ: CKFR) to Hold from Buy.
Morgan Stanley downgraded McAfee Inc (NYSE: MFE) to Underweight from Equal Weight.

Analyst downgrades: Process control sector, RHD, VG, CCE and RIG originally appeared on BloggingStocks on Wed, 19 Sep 2007 11:35:00 EST. Please see our terms for use of feeds.

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Option update: Sirus Satellite (SIRI) and XM (XMSR) volatility up into FCC decision

Paul Foster — Wed, 12 Sep 2007 12:30:00 EST

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

Sirius Satellite Radio (NASDAQ: SIRI) volatility at 68; Arbitrage spread tightens into FCC decision.

SIRI is recently up $0.22 to $3.53, over 6%. SIRI and XMSR announced on 2/20/07 a merger of equals. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.
Cowen says: "We expect FCC approval before Dec. 4, the end of the FCC review period. We believe approval as early as Oct. is possible. Maintain Outperform on both XMSR & SIRI."
XMSR-SIRI arbitrage premium spread is at 12%. Mel Karmazin is CEO of SIRI.
XMSR December option implied volatility of 68 is above its 26-week average of 51 according to Track Data, suggesting larger price risks.

XM Satellite Radio (NASDAQ: XMSR) volatility up; Arbitrage spread tightens into FCC decision.

XMSR is recently up $1.07 to $14.69.
SIRI October option implied volatility of 71 is above its 26-week average of 53 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Sirus Satellite (SIRI) and XM (XMSR) volatility up into FCC decision originally appeared on BloggingStocks on Wed, 12 Sep 2007 12:30:00 EST. Please see our terms for use of feeds.

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XM (XMSR) - Sirius (SIRI) merger decision expected shortly

Brent Archer — Tue, 11 Sep 2007 11:41:00 EST

Filed under: Analyst Reports, Deals, Good news, Industry, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical Analysis

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) is higher this morning and has climbed recently as current investor buzz is that the merger with Sirius (NASDAQ: SIRI) looks more and more likely to succeed. Analysts have said the Department of Justice could make a ruling on the merger within the next month, and they believe there is a better than even money chance the merger will be approved. If you think the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on XMSR.

After hitting a one-year high of $17.70 in January, the stock has been shaky all year as investors await firm news on the status of the planned SIRI deal. XMSR opened this morning at $13.32. So far today the stock has hit a low of $13.26 and a high of $13.64. As of 10:50, XMSR is trading at $13.55, up $0.35 (2.7%). The chart for XMSR looks bullish and steady, but S&P gives the stock its lowest 1 STAR (out of 5) strong sell rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $10 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 16.3% return in just 5 months as long as XMSR is above $10 at January expiration. XM would have to fall by more than 26% before we would start to lose money.

XMSR hasn't been below $10 by more than a few cents since 2003 and has shown support around $11 recently. This trade could be risky if the merger is not allowed, but even if that happens, this position could be protected by the strong support the stock formed just above $10 over the last year.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: At publication time, Brent neither owns nor controls positions in XMSR or SIRI.

XM (XMSR) - Sirius (SIRI) merger decision expected shortly originally appeared on BloggingStocks on Tue, 11 Sep 2007 11:41:00 EST. Please see our terms for use of feeds.

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XM Satellite Radio (XMSR) director buys 270K shares

Brent Archer — Tue, 28 Aug 2007 11:52:00 EST

Filed under: Insiders, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical Analysis

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) is higher this morning as recent SEC filing shows that an XMSR director just purchased 270,000 shares of the company's stock. If you think this means that the company is high on their chances of a successful merger with Sirius (NASDAQ: SIRI), then now could be a good time to look at a bullish hedged trade on XMSR.

After hitting a one year high of $17.70 in January, the stock has slipped quite a bit, settling in just above the $10 mark with recent resistance around $12. XMSR opened this morning at $11.43. So far today the stock has hit a low of $11.37 and a high of $11.94. As of 11:05, XMSR is trading at $11.79, up $0.30 (2.6%). The chart for XMSR looks neutral and improving slightly, while S&P gives the stock a very negative 1 STARS (out of 5) strong sell rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $10 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in just 2 months as long as XMSR is above $10 at October expiration. XM would have to fall by more than 15% before we would start to lose money.

XMSR hasn't been below $10 by more than a few cents at all in the past year and has shown support around $10.90 recently. This trade could be risky if the Sirius merger falls through, but even if that happens, that decision is not expected until early in 2008.

Brent Archer is an options analyst and writer at Investors Observer.

XM Satellite Radio (XMSR) director buys 270K shares originally appeared on BloggingStocks on Tue, 28 Aug 2007 11:52:00 EST. Please see our terms for use of feeds.

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Flash: XM CEO says goodbye

Kevin Kelly — Tue, 24 Jul 2007 19:00:00 EST

Filed under: Bad News, From the Boards, Rumors, Management, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

One of XM Satellite's (NASDAQ: XMSR) founders and current CEO, Hugh Panero, today announced he was leaving the company. The reason, many are saying, is that he would have lost his CEO title if the XM and Sirius (NASDAQ: SIRI) merger went through.

The confusing factor in this announcement is the fact that the merger still faces very significant regulatory scrutiny before it can go through and take effect. And the scary thing is, I think Panero was well aware of these regulatory issues -- everyone is.

The whole thing makes me wonder: did Panero leave for another, possibly negative, reason? I tend to believe so, and the market seemed to agree -- the stock fell more than 5% after the company made this announcement.

What do you think?

Flash: XM CEO says goodbye originally appeared on BloggingStocks on Tue, 24 Jul 2007 19:00:00 EST. Please see our terms for use of feeds.

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This week's rumor round-up: More bids for XM Satellite Radio?

Eric Buscemi — Fri, 06 Jul 2007 15:30:00 EST

Filed under: Rumors, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

It may be Independence Day week, but it appears that there are a number of companies willing to sell their independence to the highest bidder.

XM SATELLITE RADIO HOLDINGS INC (NASDAQ: XMSR)

Sirius Satellite Radio Inc's

SIRI

BUILDING MATERIALS HOLDING CORPORATION (NYSE: BLG)

Continue reading This week's rumor round-up: More bids for XM Satellite Radio?

This week's rumor round-up: More bids for XM Satellite Radio? originally appeared on BloggingStocks on Fri, 06 Jul 2007 15:30:00 EST. Please see our terms for use of feeds.

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Oprah enters the wild world of brick-and-mortar retail

Beth Gaston Moon — Thu, 28 Jun 2007 16:00:00 EST

Filed under: Newspapers, XM Satellite Radio (XMSR)

For those of you who just aren't sated by the daily one-hour program, the monthly magazine, occasional feature films and made-for-TV movies, and the radio content available at XM Satellite Radio (NASDAQ: XMSR), you'll be relieved to hear that a one-stop shop for all things Oprah is in the works.

Oprah Winfrey's privately held company, Harpo Inc., released a statement indicating that construction has started on a store carrying Oprah merchandise. The boutique will be located catty-corner from the Harpo Studios building in downtown Chicago and will be one story and 4,500 square feet. Many details, including an opening date, have yet to be worked out.

The queen of the entertainment world already sells some products through an online store. Oprah fans can pick up a $14 iPod cover with the Oprah logo, DVDs, and African apparel and artwork. The Chicago Sun-Times reports that these and other Oprah-related merchandise will also be available in the retail store. Know a co-worker or friend that's expecting? The $36 'O Baby' velour jogging suit could be the perfect gift.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Oprah enters the wild world of brick-and-mortar retail originally appeared on BloggingStocks on Thu, 28 Jun 2007 16:00:00 EST. Please see our terms for use of feeds.

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XM-Sirius process moving forward

Brent Archer — Mon, 11 Jun 2007 14:25:00 EST

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical Analysis

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) opened at $10.67. So far today the stock has hit a low of $10.62 and a high of $10.90. As of 10:55, XMSR is trading at $10.89, up $0.28 (2.6%).

After hitting a one year high of $17.70 in January, the stock has stumbled down to near its year-lows over the past six months. The FCC issued a public notice Friday seeking comment from the public on the proposed merger between Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio Holdings. Given that the FCC generally tries to finish its review of mergers within 180 days, this means that there could be a potential decision from the FCC by the end of 2007. Recent technical indicators for XMSR have been neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $10 range. XMSR hasn't been below $10 since October and has shown support around $10.40 recently. This trade could be risky if the Sirius merger gets the ax, but with today's news, that kind of announcement shouldn't happen until well after July expiration.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls a position in XMSR or SIRI.

XM-Sirius process moving forward originally appeared on BloggingStocks on Mon, 11 Jun 2007 14:25:00 EST. Please see our terms for use of feeds.

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