This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why I Am Buying Pandora at Any Price

NEW YORK ( TheStreet) -- I take equal amounts of heat from tortured Sirius XM (SIRI - Get Report) bulls and investors who would not understand what a perpetual startup is if Steve Jobs stood in front of them and explained.

These folks chide me because I have been purchasing shares of Pandora (P - Get Report) since last year at prices between $8 and $15 apiece. And, barring an unforeseen and wholesale change to the company's long-term narrative on earnings next week, I will continue to buy Pandora at any price.

Using Tuesday's closing price of $10.83, P is up 38.3% since posting a 52-week low of $7.83 intraday on April 18. Pick a peer, any peer and Pandora has outperformed it over that time frame. For example, SIRI is down 10.4% since its April 18 intraday low. Even Apple (AAPL - Get Report) is off by a scary 8.2%.

While it's fun to pull these types of numbers and claim short-term bragging rights, I tend not to let the practice cloud my logic, judgment or long-term conviction. It never hurts to know where you stand, but you must realize that a stock like Pandora can lose 40% just as fast (and even faster) as it gained it.

Pandora is not Sirius XM. It is not Apple. It sits at a stage of development Apple has already seen and SIRI bulls will never have a chance of seeing, particularly with Mel Karmazin at the lead.

Perpetual Start-Up

Steve Jobs ran Apple as a perpetual startup. Canadian thinker and marketer Mitch Joel relays words that provide a nice working meaning of the term:

It's hard for people who have traditionally had a job to think like an entrepreneur, but it's more critical than ever. I often tell people that an entrepreneur is someone who is trying to create the future that doesn't yet exist, while a businessperson is someone who is trying to mitigate risk and minimize mistakes.

Steve Jobs was an entrepreneur. It even said so on his death certificate. Mel Karmazin is a businessperson. And that's exactly how he should and will be remembered.

Make no mistake about it. Pandora co-founder and Chief Strategy Officer Tim Westergren is an entrepreneur.

I am tough on Sirius XM, in part, because there's so much potential there, particularly with a talent like Howard Stern under contract. But, in the absence of any forward-looking vision or meaningful marketing activities, I am not sure if anyone can salvage anything from the slow-growth wreckage Karmazin prepares to leave behind.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
CMG $637.50 0.00%
P $18.37 0.00%
SIRI $3.96 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs