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

Hey, Now! Sirius More Attractive Than Ever (Update 3)

During the Great Recession, Sirius was losing subscribers, but the company has seen positive trends as the car market bounced back. Sirius added 1.7 million net new subscribers in 2010. The company has a 2% monthly churn rate, down sharply from just a few years ago.

Barclays Capital analyst James M. Ratcliffe notes that even though satellite radio faces competition from other forms of in-car entertainment, Sirius "has continued to grow its sub base in spite of this, driven in large part by the company's alignment with automaker interests." Ratcliffe rates shares underweight with a $2 price target.

The issue with Sirius has always been its low stock price, as well as the fact that Liberty Media Capital (LMCA) owns 40% of the company. Liberty has historically sold off its investments or spun them out, such as Discovery Communications (DISCA), DirectTV (DTV) and others.

Analysts have also asked why Karmazin and the board do not do a reverse split to garner more institutional investor support. Tinker, however, notes that "the company has a lot of retail investors and they want to help them."

Sirius XM reports earnings on February 9. Wall Street analysts polled by Thomson Reuters expect Sirius to report $785.49 million in revenue and 1 cent per share in earnings.

Sirius shares are up 1.65% in Wednesday trading at $2.15.

Interested in more on Sirius? See TheStreet Ratings' report card for this stock.

And check out Roberto Pedone's technical take on the stock in " 5 Earnings Stocks Poised to Pop."

Check out our new tech blog, Tech Trends.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:
2 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
F $13.56 0.00%
GM $31.80 0.00%
LMCA $18.30 0.00%
SIRI $3.95 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs