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.

Actually, before you compose a bunch of angry missives, please consider the state of terrestrial radio. Quite frankly, CBS doesn't have a choice. Between the lousy growth prospects for the medium, and the challenged status quo of the advertising market given the terrible global recession that continues to rip through the markets like a hideous beast, changes have to be made. Changes that you thought would never come.

Continue reading CBS takes WBCN to web -- a wise move?

CBS takes WBCN to web -- a wise move? originally appeared on BloggingStocks on Wed, 15 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

Sirius XM (SIRI) reaches 11th-hour deal originally appeared on BloggingStocks on Tue, 17 Feb 2009 09:45:00 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.

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.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

They had to twist my arm to write about Playboy Enterprises Inc. (NYSE: PLA). At least that's the story I am telling my wife and I am sticking to it.

The problem Playboy faces -- as do other purveyors of adult entertainment -- is a simple: why buy a cow when you can get the milk for free. That's a crude and probably sexist metaphor, but an accurate one. Not only is the amount of porn on the internet mind-blowing, but increasingly it's free and can be accessed anonymously. For Playboy and its competitors, the problem is only going to get worse because the popularity of these sites appears to be soaring.

Wall Street already has little faith that the Chicago-based company can redeem itself. Shares in the company built by Hugh Hefner have dropped more than 82% this year. The company has been a mess for years. Net income in the second quarter was a puny $2.1 million, or 6 cents per share. Revenue fell 14% to $73.4 million as higher licensing revenue did not offset the declines in its media business.

Particularly worrisome was the loss in the publishing unit of $1.9 million following declines in circulation and advertising at the domestic edition of Playboy magazine. Advertising pages dropped a whopping 10 percent in the third quarter.

Continue reading Makeover needed: Playboy

Makeover needed: Playboy originally appeared on BloggingStocks on Fri, 24 Oct 2008 17:10:00 EST. Please see our terms for use of feeds.

Continue reading Sorry Dolly Parton, the law is on the side of Sirius' Howard Stern

Sorry Dolly Parton, the law is on the side of Sirius' Howard Stern originally appeared on BloggingStocks on Fri, 16 May 2008 14:41:00 EST. Please see our terms for use of feeds.

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.

This post was part of AOL Money & Finance's Best & Worst of 2007. Voting has now closed and readers have chosen Sanjaya Malakar as the most shameless attempt to cash in on the proverbial 15 minutes of fame. Be sure to let us know in the comments if you are pleased with this result.

When Andy Warhol observed nearly 40 years ago that "In the future, everyone will be world-famous for 15 minutes," the man wasn't kidding. While the toe-headed artist couldn't have predicted the rise of the internet or reality television in 1968, this pair of media outlets now enables anyone with a webcam and a dream to put themselves on the map for one brief shining moment (or even several). Below are some of the folks we hated to love as they flitted across the pop-culture radar this year.

For about six weeks or so, the main topic of discussion at the nation's water coolers was the hairdo of a mild-mannered 17-year old. Sanjaya Malakar -- a contestant on News Corp.'s (NYSE: NWS) FOX Network's American Idol -- divided a nation with his questionable talent and his ever-changing coiffure. Howard Stern launched a campaign, the goal of which was to discredit the show with a Sanjaya victory. Sanjaya took it all in stride ... the tongue-lashings from Simon Cowell, the hatred from America's bloggers, the worldwide attention. But underneath it all, he was a sensitive teenaged boy, one who couldn't quite blink back the tears when he was mercifully ousted from the competition. From that point on, the Idol season wasn't the same. I barely remember who won.

Continue reading Best & Worst of 2007: Shameless attempts at cashing in on '15 minutes'

Best & Worst of 2007: Shameless attempts at cashing in on '15 minutes' originally appeared on BloggingStocks on Thu, 29 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

This post is part of our Hottest Products of 2007 feature. Also check out our other Hottest Products of 2007 posts and let us know which product you think is the greatest thing since sliced bread.

On his Sirius Satellite Radio (NASDAQ: SIRI) show one morning, Howard Stern hypothesized that a vague loss of direction or sense of hopelessness is often the backdrop for someone getting a tattoo who wouldn't ordinarily have done so. (The shock jock isn't judging; he has at least two of his own.)

His theory rang a bit familiar ... when I was 26 (old enough to know better), I got some "ink" of my own. Two of my best friends were about to move away, my parents had recently relocated from our mutual hometown, and my boyfriend had unceremoniously ended our relationship. At the time, I had my lower back branded with the orange-and-blue "V" and sabers that trademark the University of Virginia, my alma mater. I did so while repeating three mantras I considered to be quite wise at the time.

First, my tattoo of choice wasn't a capricious decision ... I will always be a UVa alum, and I will remain proud of that fact. Secondly, while larger than I wanted (the artist talked me into a bigger size, noting that it would be "framed by my entire body" -- famous last words), it is in a spot not normally visible in the workplace or in a cocktail dress. Finally, as I flippantly told my friends and my displeased elder relatives, "When I'm 60 and ready to be rid of this thing, they'll have technology where I can just wipe it off, no problem."

Continue reading Hottest Products of 2007: Tattoos that wipe clean in one fell swoop?

Hottest Products of 2007: Tattoos that wipe clean in one fell swoop? originally appeared on BloggingStocks on Thu, 22 Nov 2007 19:10:00 EST. Please see our terms for use of feeds.

The sizable hurdles of regulatory approval on the part of the Justice Department and the Federal Communications Commission (FCC) remain. Those opposed to the collaboration say the deal would create a monopoly in the satellite radio industry and point to the failed merger attempt between EchoStar Communications (NASDAQ: DISH), parent of the DISH Network, and DirecTV.

Continue reading Sirius, XM shareholders approve merger

Sirius, XM shareholders approve merger originally appeared on BloggingStocks on Wed, 14 Nov 2007 11:36:00 EST. Please see our terms for use of feeds.

Rural groups lobby for Sirius/XM merger originally appeared on BloggingStocks on Wed, 24 Oct 2007 19:31:00 EST. Please see our terms for use of feeds.

Continue reading Media World: Don Imus returns and so will his media pals

Media World: Don Imus returns and so will his media pals originally appeared on BloggingStocks on Mon, 15 Oct 2007 18:26:00 EST. Please see our terms for use of feeds.

WebProNews reports on a rumor that Google Inc. (NASDAQ: GOOG) is proposing to take over Sirius Satellite Radio (NASDAQ: SIRI). This rumor originated with Zachary Rodgers on ClickZ who posted: "A high profile source is pretty convinced ol' Goog is on the verge of snapping up Sirius Radio."

While such a merger would benefit Google, which is looking for a satellite outlet for its dMarc/AdWords radio advertising technology, there is little likelihood that Sirius would cooperate. After all, it's trying to get approval to merge with XM Satellite Radio Holdings (NYSE: XMSR).

I think this rumor is amusing, and if Google wants Sirius to use its technology to serve radio advertisements, it could just wait until after the merger and try to sell it to the new company. It's hard to see why buying a money losing company for, say, $5 billion just to sell it some technology would generate a positive return for Google shareholders.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Will Google (GOOG) buy Howard Stern's Sirius (SIRI)? originally appeared on BloggingStocks on Tue, 25 Sep 2007 08:45:00 EST. Please see our terms for use of feeds.

Continue reading In the rap battle for sales, Kanye trumps 50 Cent

In the rap battle for sales, Kanye trumps 50 Cent originally appeared on BloggingStocks on Wed, 19 Sep 2007 18:20:00 EST. Please see our terms for use of feeds.

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.

Like most people, I never watched `Anchorwoman.' I have better things to do with my time like gouge out my eyes. The sad fact is, though, that the program's scenario isn't that unrealistic. Like newspapers, local TV news is on the decline, and the outlook is pretty bleak.

"In 2006, audiences appeared to be dropping for newscasts across all time periods during the day - even mornings, which had been growing," according to the Project for Excellence in Journalism. "That dampened the hopes raised in earlier years that the hemorrhage in viewers had stabilized."

CNBC has the "Money Honey" Maria Bartiromo and "Street Sweetie" Erin Burnett. There are scads of Internet sites rating the looks of women and occasionally men who work in television news. There's even a Naked News Internet show where the mostly female anchors strip as they deliver the news -- or at least that's what I've heard. Check out the YouTube video below if you want to see what I mean.

Continue reading Media World: Fox cancels 'Anchorwoman' and restores my faith in TV

Media World: Fox cancels 'Anchorwoman' and restores my faith in TV originally appeared on BloggingStocks on Fri, 24 Aug 2007 07:30:00 EST. Please see our terms for use of feeds.

Sirius Satellite Radio (NASDAQ: SIRI) and rival, XM Satellite Radio's (NASDAQ: XMSR) proposal to allow a la carte pricing should convince skeptical regulators to approve the merger which has been bogged down in debtae for five months.

The proposal announced earlier would enable users to cherry-pick their favorite channels as part of a discounted package. The cheapest offering would run for $6.99 per month and includes 50 selected channels; for $16.99, a subscriber can keep their existing SIRI or XMSR service and select from the a listing of the "best" offering from the competitor. Beyond the 50-channel package, additional channels can be added for as little as 25 cents a piece. Premium programming, however, would cost $5 or $6. For the full press release from SIrius detailing the proposed plans, click here.

This should rebut criticisms that the merger hurts consumers. I certainly hope it goes through. The chance to have Howard Stern, Major League Baseball, and the best in commercial-free music is tantalizing, and certainly worth the price of a movie ticket. In fact, it seems as though the only contingent that would suffer from a merger of the only two satellite firms would be their biggest competition, terrestrial radio.

Can anyone explain to me why this merger isn't over and done already? Satellite radio is not a necessity - if the Sirius-XM pairing leads to higher prices, subscribers can choose to leave. The industry faces competition from terrestrial (read: "free") radio, Internet radio, MP3 players, CDs, books on tape, and numerous other forms of entertainment for the home and vehicle.

Continue reading Sirius, XM new a la carte pricing plan benefits consumers

Sirius, XM new a la carte pricing plan benefits consumers originally appeared on BloggingStocks on Wed, 25 Jul 2007 16:20:00 EST. Please see our terms for use of feeds.

Sirius Satellite Radio

Stern sidekick leaving show? originally appeared on BloggingStocks on Tue, 29 May 2007 12:55:00 EST. Please see our terms for use of feeds.

Crain's NewYorkBusiness.com has told me some amazing news. Today, at 5:00 pm EST, the all-talk radio station 92.3 WFNY will change back to its historic rock roots as WXRK, or K-ROCK, according to sources at CBS Radio (NYSE: CBS).

The move couldn't come fast enough.

Its the first sign of change under new CEO Dan Mason, who replaced Joel Hollander last month.

The move back to rock music ends the all-talk format when Howard Stern went to Sirius Satellite Radio (NASDAQ: SIRI) at the end of 2005. WFNY has struggled from day one. The station had a paltry 1.3 share of the audience during the 2007 winter quarter, the same a year ago.

Opie & Anthony, currently serving a 30-day suspension at XM Satellite Radio (NASDAQ: XMSR), will get to keep their morning drive job on the new (old) WXRK. After 9 am, the station will return to its rock roots.

Just minutes ago, Opie from the O&A was the first live voice listeners heard, as Guns N' Roses' "Welcome to the Jungle" played in the background. The station officially kicked off the format change playing one of Nirvana's greatest hits, "All Apologies."

Its O.K. K-Rock, I forgive you.

Rock music comes back to NYC! O&A spared originally appeared on BloggingStocks on Thu, 24 May 2007 17:21:00 EST. Please see our terms for use of feeds.