This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The New CEO at Sirius XM and Why It Matters

Stocks in this article: SIRI P LMCA CBS

NEW YORK ( TheStreet) -- Sirius XM (SIRI) stands at a crossroads full of uncertainty, but overloaded with opportunity. In the next few months, it can move -- in lockstep with Howard Stern -- to take over the world or it can refuse to stop and look around and let life pass it by.

I spoke to TheStreet's navigator of the Stocks Under $10 world, David Peltier, about SIRI on Thursday. David summed up logical sentiment on company and stock:

There's a news vacuum at Sirius XM, with Mel Karmazin on the way out and little visibility about the company's future. I'd wait for a 5% to 7% decline before buying the stock. It would look attractive below $2.60.

Bingo, as usual from David.

There's no question about it -- near-term I missed on SIRI. That goes hand-in-hand with a short-term miss on Pandora (P). But here's just another example of the importance of separating company from stock and, even more, short term from long term.

Although my cost basis on P was $10.19, I did not lose money on the stock when I liquidated my position just prior to joining TheStreet as a full-time employee ( TheStreet's corporate policy prohibits full-time employees from owning individual stocks), thanks to aggressive covered call writing.

Over the past six to 12 months, you could have generated considerable profits trading both SIRI and P on the long and/or short side. That takes a nimble trader. Outside of using options to hedge, that's not my bag. I prefer to consider names like SIRI and P within the context of long-term, dare I say, "buy-and-hold" -- grab more shares on the dips, implosions and noise investing.

That method, if well-timed, worked wonders on both stocks this year -- SIRI over longer time periods and P on quick, volatile, news- and rumor-driven gyrations.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, relays real research on Stocks Under $10 with significant upside potential. See what he's trading today with a 14-day free pass

However, from the buy-as-an-investment perspective, I still like P long-term (one to three years out) and agree with Peltier that SIRI is a murky play.

With Liberty Media Corporation (LMCA) effectively calling the shots, SIRI and LMCA suits have a decision to make. It comes down to a core -- and very philosophical -- fundamental belief about the future of media, particularly radio. How do you view the world?

To this point, Mel Karmazin's more traditional view of radio has worked incredibly well. I'll take my crow with sea salt, a dash of red pepper and a sprig of cilantro: You cannot find a more successful example of the subscription model than Sirius/XM.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs