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

Six Buys Near 52-Week Highs

SIRI Chart SIRI data by YCharts

Sirius XM Radio(SIRI - Get Report)

Background: Sirius is a digital satellite radio system that broadcasts music and entertainment programming throughout the continental U.S. Sirius was founded in 1990 and trades an average of 93.4 million shares a day and has a market cap of $9.7 billion.

52-Week High: $2.64

In the last month, the stock has really moved higher, gaining 18.8%. The average analyst target price for SIRI is $2.68. A couple of weeks ago, while making new 52-week highs, I discussed Sirius in a similar article Five Buys Near 52-Week Highs .

It appears that Liberty is moving in to take control of Sirius, which is very valuable to Liberty for the NOLs, or operating losses for tax purposes. How this will ultimately play out for average retail investors is uncertain, but based on the moves Liberty has made so far, I would not expect a huge payday. Liberty has played its hand well so far and has not left much on the table.

At least one investor is unhappy about Liberty's actions to take control of Sirius. It appears the city of Miami Police Relief and Pension Fund is suing Sirius for not doing enough to protect non-Liberty shareholders from a takeover.

With that said, look for dips to create buying opportunities in Sirius. It may be smart to hedge with covered call writing. Better safe than sorry when big money is positioning itself, from my vantage point.

Dollar for dollar, Sirius does have the attraction of large percentage moves in its shares. For those with a desire to allocate higher risk capital for greater gains, Sirius may be a stock with clear reception.

The current proportion of the float sold short is about 7%. In the last short interest report on Aug. 15, it had the lowest number of shares short in 2012. About 260 million shares remain shorted.

Note: The author uses,,, Tradestation and Reuters for data. P/E ratios are generally adjusted based on an average number of shares and for operational earnings.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
7 of 7

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 $117.81 0.00%
PG $75.70 0.00%
SIRI $4.14 0.00%
S $3.73 0.00%
FB $105.45 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs