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
TheStreet Open House

Five Buys Near 52-Week Highs

SIRI Chart SIRI data by YCharts

Sirius XM Radio (SIRI - Get Report)

Background: Sirius XM Radio provides satellite radio services in the U.S. and Canada. The company broadcasts approximately 135 channels, including music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. Sirius XM trades an average of 58.2 million shares per day with a market cap of $16.4 billion.

52-Week High: $3.15

Beta: 1.66

Price to Book: 3.85

I have followed SiriusXM on and off now for almost two years. Sirius is a fun stock because the Internet is always buzzing about investors who bought at next to nothing and watched it come back from the dead.

I never shorted Sirius, but I made money selling call options many times. Sirius trades at an unusually large price-to-earnings ratio due to the large perma-bull base of investors.

As a result of so many hard-core investors, you can't look at the metrics and dismiss Sirius as overpriced out of hand. Otherwise, you run the risk of not giving Sirius the full attention it warrants.

Also, unlike most stocks that trade for less than $5, Sirius doesn't appear to be a bankruptcy candidate (any longer). At the same time, don't expect to get rich from buying Sirius at this level because it is right on the edge of being controlled by Liberty Media (LMCA), and there are more than five billion (yes with a b) shares in the float for a market value of nearly $18 billion.

With $18 billion chasing earnings of $400 to $500 million a year, the upside is limited but still acceptable on a percentage basis. Look for a buying dip near $2.95 as an entry target. For the bearish thesis, the super-sized valuation has not been lost on the shorts.

Short interest is near 10% and short sellers should not be ignored. That said, they are under pressure and underwater with the price at yearly highs. If shorts decide to say uncle and exit, they may push the stock price up even further if enough of them decide they had enough at once. SIRI Revenue Per Share TTM Chart SIRI Revenue Per Share TTM data by YCharts

At the time of publication the author had no position in any of the stocks mentioned.

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

6 of 6

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
CCE $44.00 0.00%
ORI $14.70 0.00%
PHM $22.02 0.00%
SIRI $3.85 0.00%
TWX $85.11 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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