Analyst Upgrades

• Canaccord believes growth in DigitalGlobe's (DGI) commercial business will be a catalyst for shares. The firm upgraded shares to buy from hold and has a $38 price target on the stock.
• Standpoint upgraded Abercrombie & Fitch (ANF) to accumulate from hold based on valuation. The firm has a $47 target on the stock.
• Morgan Keegan upgraded Open Text (OTEX) to outperform from market perform based on the company's strong FY2011 EPS outlook.
• Devon Energy (DVN) was upgraded to overweight from equal weight at Morgan Stanley.
• Magna (MGA) was upgraded to outperform from sector perform at RBC Capital.
• EnCana (ECA) was upgraded to outperform from neutral at Macquarie.

Over at Bloomberg BusinessWeek, there's an article featuring Sirius XM Radio (SIRI). An analyst from Miller Tabak offered positive comments on the company, and believes the shares are a buy and that they could reach $1.25 within the next twelve months.

I don't know. This one just seems too risky. Don't you get the feeling that, once you buy in, the stock is going to fall precipitously? It's had a decent run, according to the one-year chart. In fact, the company is trading around the $1 level as I write this during the afternoon session. Know what the 52-week low is? Try a paltry 37 cents.

Option volume was unusually heavy on Sirius XM Radio (SIRI) Tuesday, with about 31,000 contracts crossing the tape on the satellite radio stock. Overall, call volume rose to 1.71 times the usual level, while put volume climbed to nearly two times the norm. And, interestingly enough, most of the attention was centered on SIRI's January 2012 series of options.

The day's most active strike was SIRI's January 2012 2-strike call, where 14,112 contracts changed hands. About 64% of these contracts traded at the ask price, suggesting a bias toward buying activity, and open interest on this LEAPS option rose overnight by 10,470 contracts -- confirming that new bullish bets were added here on Tuesday.

Late Friday, Sirius XM Radio (SIRI) expanded the size of its planned senior notes offering from $550 million to $800 million. The sale of senior notes due 2015 was conducted via private placement, with the notes bearing an annual interest rate of 8.75%. Stakeholder Liberty Media (LCAPA) was slated to buy $150 million of the notes.

The offering is intended to provide Sirius the ability to prepay, in full, all of its borrowings under a senior secured term loan that matures in 2012. The satellite radio company will also redeem notes due 2013, and finance the fees and expenses related to the notes offering.

"There are certain economic truths that can be used by investors to beat the market. For example, monopolies have tremendous advantages that allow a company to charge above where normal supply and demand; that means big profits for investors," says Jamie Dlugosch.

The contributing editor to Main Street Investor explains, "One such monopoly that we recommend is Sirius XM Radio (SIRI) -- a monopoly that has yet to be priced like one."

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) reported better-than-expected Q2 results, sending shares higher.
• Blackstone Group (NYSE: BX) said it swung to a Q2 profit despite a dearth of leveraged buyouts.
• CBS Corp. (NYSE: CBS) Q2 earnings declined but still topped estimates, sending shares higher.
• Coinstar Inc. (NASDAQ: CSTR) reported stellar Q2 results driven by its the popularity of RedBox.
• Clorox Co. (NYSE: CLX) posted solid Q4 earnings but said revenues were flat due to currency effects.
• Duke Energy Corp. (NYSE: DUK) lower Q2 earnings beat expectations by a penny but revenue fell short.

With Sirius XM Radio, Inc. (NASDAQ: SIRI) shares hovering around 13 cents mid-morning, the pioneering and sole satellite radio company is probably savoring its investment this week by John Malone's Liberty Media Corp. (NYSE: LINTA).

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.