However, for Sirius, it's more than just the buyback program. Liberty Media (LMCA) is now in full control of the company. Sirius is no longer bleeding subscribers and is now posting record numbers for revenue and cash flow growth. So, not only is the company operating on all cylinders, there are no meaningful signs of slowing down, including its recently announced 15% increase in net subscriber additions last week.
What's more, the company just also announced a new partnership with AT&T (T) to provide connectivity to its telematics platform that will arrive in new Nissan (NSANY) vehicles. In other words, Sirius is working to become more than "just radio." While there are several unknowns with telematics such as what it will become and how much it will cost, it is clear that Sirius is not sitting idle -- waiting to run out of gas.
The company has found a way to profit from the "connected car," which is what Apple and Google are racing to produce. Is it possible that Sirius, which is not seen as a "tech company," will get there first? I wouldn't wait to find out. Shares are getting progressively more expensive. Investors that are looking for ways to play the audio streaming market that are also looking for some safety would do well taking a long ride with Sirius.
I like a good turnaround story as much as the next person. But as Warren Buffett reminded, price alone does not justify buying a stock. While the share prices of these three companies are relatively cheap, their relative values are based on many other factors such as the quality of their management and (at times) strokes of luck.In the case of AMD, though, we predicted the importance of weak margins and the risk in the model of betting too heavily on the gaming industry long before the Street realized that the company was going down the wrong path. These are the sort of clues that serves as due diligence. I call it "looking for coupons." At the time of publication, the author was long AAPL. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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