Sirius XM Radio
One under-$10 name that Robertson's crew seems to love is
Sirius XM Radio (
SIRI), which broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the U.S. for a subscription fee through its proprietary satellite radio systems. This stock has been in play with the bulls so far in 2013, with shares up sharply 24%.
Sirius XM Radio has a market cap of $22.42 billion and an enterprise value of $25.57 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 48.13 and a forward price-to-earnings of 30.08. Its estimated growth rate for this year -82.4%, and for next year it's pegged at 33.3%.
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On Monday, Lazard Capital Market's Barton Crockett said he thinks that SIRI could rise nearly 40% to $5 a share. In a note out to clients, the firm said the Street should have taken the announcement on Monday morning that Sirius and MLB renewed their agreement to extend live broadcasts through 20121 as a more bullish sign. The note also said the deal comes after SIRI said last week that it had signed away Piolin, a major Spanish-language radio personality, from Univision to an exclusive deal.
Robertson added to his holdings in Sirius XM Radio by 76.91%, after he bought the stock between $2.99 and $3.59, with an estimated average price of $3.29. His total holdings of SIRI stock are now 7.3 million shares.
From a technical perspective, shares of SIRI have been uptrending relatively strong for the last year, with shares moving higher from its low of $2.33 to its recent 52-week high of $3.85 a share. During that uptrend, shares of SIRI have been making mostly higher lows and higher highs, which is bullish technical price action. That said, shares of SIRI have started to come off its 52-week high with conviction and the stock looks ready to break below its 50-day moving average of $3.57 a share.
If that level gets broken with volume, then SIRI could easily set up to re-test its 200-day at $3.21 a share, or trend much lower. If both its 50-day and 200-day moving averages are taken out on this pullback, then I would put SIRI on my watchlist for a potential buy once it trades below $3 or near its two-year base level at $2.50 a share.