So, in essence, its failures are now worth more than its successes. If that is not an indictment of any company, I don't know what is.
For investors who continue to think Liberty cares about the stock, as I have said recently it has already gotten the cake. The stock will likely continue to fall and Liberty will continue to (as retailers like to say) "back up the truck" -- except, it has little to no risk in when it buys.
The Bottom Line
Underestimating the competition is one of the biggest mistakes that any investor can make, second only to not fully understanding the business of what you are buying.
Remarkably, Sirius investors continue to show a complete disregard for these two concepts and forget they are buying a business, not just a stock. So going back to Buffett's quote suggesting a stock will do well if a business does well, investors need to ask themselves: How well has Sirius really been doing?Does it matter where it counts? What's the point of subscriber growth and rising FCF that yield little in profits? If the service is so great, why have 11 million people canceled over the past two years while net subscribers have only grown by 3 million since 2009? Is the business really doing well? We'll find out once Samsung gets going.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV