This Day On The Street
Continue to site right-arrow
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!

Sirius XM Steadily Overcoming Investor Doubts

Stocks in this article: SIRI AAPL GOOG NFLX P

While we do know that Netflix has been growing net subscribers at an impressive rate, we don't know how the company has performed in terms of cancellations or what the subscription industry calls "churn." For Sirius, though, over the past three year or so, churn has remained stable at 1.99% to 2%. This quarter, however, churn was down to 1.97%.

Although it looks like a small number, don't be quick to discount how important this slight improvement in churn really is. It can mean as much as one million additional subscribers during the full-year. It also means that Sirius is becoming more "sticky" with its users and subscribers are demonstrating incredible brand loyalty.

anagement figured out ways to squeeze extra profits out of each subscriber it kept. ARPU, which stands for average revenue per user/subscriber, was up 23 cents sequentially to $12.28. Whether Sirius was going to sacrifice profits for revenue and subscriber growth was one of my chief concerns heading into this earnings report.

Sirius is known for aggressively reducing rates to maintain its subscriber count. Management figured out a way to meet conservative expense control with strategic growth initiatives such as the telematics platform, which I wrote about recently. It's still too early to proclaim telematics a bread-winner. But it's clearly not a money-loser.

In the meantime, I don't believe that there should be any further questions about Sirius' business model. The company continues to do the impossible -- grow despite stiff competition from Pandora (P), Spotify and now Apple, which is planning to enter the automobile dashboard at the beginning to 2014. The bears, however, have proven to be incredibly patient. At some point one side will win. So far in 2013, the victor is clearly Sirius.

At the time of publication, the author held shares of Apple.

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

Richard Saintvilus is a co-founder of where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst ¿ bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!


DOW 17,631.82 -40.78 -0.23%
S&P 500 2,045.35 -6.47 -0.32%
NASDAQ 4,742.8110 -15.0680 -0.32%

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