This Day On The Street
Continue to site
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 It's Time to Sell Sirius and Pandora

NEW YORK ( TheStreet) -- In order to survive in the investing world, and on Wall Street in particular, sometimes it becomes necessary to contradict yourself -- or at least have certain offsetting viewpoints.

The reality is, if you are an investor and you are not mired in a state of perpetual worry, then you are probably not paying attention.

"Conviction" is overrated. This seems to be the case for Pandora Media (P - Get Report) and Sirius XM (SIRI - Get Report) as they appear to be stuck in the constant dance of one step forward and two steps back.

For as well as Pandora has performed of late, it seems inevitable that tech giant Apple (AAPL - Get Report) is poised to take over its territory. Apple has yet to make a formal announcement about its streaming aspirations and the rumor alone was enough to send Pandora investors running for cover.

It is premature to say that Pandora would not be able to coexist with Apple if it indeed decides to pursue streaming, but when have we known Apple to be pleased with second place?

Apple is not new to music. What's more, the ease with which its existing mobile devices such as iPods, iPads and iPhones can integrate with IP and within the automobile will render Pandora irrelevant in the manner that CDs have become archaic. People will be able to stream their existing songs on to various platforms all from their existing storage on iCloud.

What will then be left for Pandora besides becoming an attractive acquisition target? I can see Google (GOOG - Get Report) or Microsoft (MSFT - Get Report) becoming interested, but will they be willing to pay more than what the stock is currently worth?

As much as I enjoy listening to Pandora, it is hard to see that the company will have a sustainable future if/when Apple decides it wants its business. I think the stock is a sell.

For similar reasons, I have become somewhat concerned about the prospects of Sirius XM (SIRI - Get Report). However, Sirius' biggest fear at the moment has only to do with the challenge it faces against Liberty Media (LMCA) who wants nothing more than to take over the company.
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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.95 -0.72%
GOOG $699.60 0.56%
LMCA $19.52 2.50%
P $9.20 -0.86%
MSFT $49.96 0.18%


Chart of I:DJI
DOW 17,644.35 -6.91 -0.04%
S&P 500 2,046.63 -4.49 -0.22%
NASDAQ 4,711.8380 -13.8010 -0.29%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs