Time for Sirius to Get Serious About Earnings

Earnings, or should I say losses, have recently turned the corner and are estimated to be up 685.70% this year, down 81.80% next year and increase by an annual rate of 25.20% over the next five years. The price-to-earnings ratio is 36.64 compared to the market P/E of 15.30 and the stock pays no dividend. In spite of its string of losses the stock still has a B+ financial strength rating.

Investor sentiment: Expectations are high and TheStreet gives the stock an A rating. Wall Street analysts have released four strong buy, six buy, four hold and one under perform reports to clients.

I look for individual investors' opinions on Motley Fool and 5,465 readers have given the stock an 82% vote of confidence to beat the market. Columnists Jim Cramer, Wayne Rogers and Tobin Smith were kind to the stock.

Conclusion: SiriusXM is a highly speculative stock that a lot of traders, both individual and professional are focused on. I think that expectations are high, maybe too high.

This stock is not for investors but may offer rewards for traders and speculators willing to take a risk. Anything less than a 2-cent earnings report will collapse this stock while above 3 cents might see the stock finally bust through the $3 range.

Watch the moving averages and 14-day turtle channels as the Oct. 30th earnings report date is reached. Be very careful on this one:

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

Follow @JimVanMeerten

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

« First ‹ Previous 1 2