Should I Do It? Sirius

This alert originally appeared in TheStreet.com Breakout Stocks newsletter on Sept. 13 at 3:08 p.m. EDT. It's being offered as a bonus for TheStreet.com and RealMoney.com readers. For a free trial to Breakout Stocks, click here.

The recent decline in the share price of Sirius Satellite Radio(SIRI Quote) has brought its market capitalization below the $6 billion maximum, making the stock eligible for inclusion in the Breakout Stocks model portfolio. The stock was recently trading at $4.07.

Given that, I wanted to analyze this company for readers so they can get a better understanding of our research process, and answer the question: Should I buy shares in Sirius?

As most readers know, Sirius is one of the leading satellite radio providers, best known for its solid lineup of programming, including "The Howard Stern Show," NFL football, and "Martha Stewart Living." The company's main competitor is XM Satellite Radio(XMSR Quote).

Sirius has experienced very strong revenue growth as early adopters scooped up its service. The company generated $424 million in sales over the past 12 months, a massive gain from just $13 million in 2003 and $67 million in 2004. In addition, subscriber growth has been impressive, as the company had 4.7 million subscribers at the end of June, up from just 30,000 at the end of 2002.

However, it appears that this growth is slowing. While the company's revenue growth is impressive -- 188% in the most recent quarter year over year -- it has been steadily decelerating. In addition, despite the arrival of radio legend Howard Stern at the beginning of this year, Sirius had slower sequential growth in subscriber numbers relative to last year, despite Stern's huge popularity.