Skip to main content

This column was originally published on RealMoney on Nov. 8. It's being republished as a bonus for readers. For more information about subscribing to RealMoney, please click here.

What do you do with a company that will have $3 billion in revenue in a few years -- up from a billion now -- has a loyal following, can raise prices and has huge market share and is taking more?

Do you sell it?

That's what people are doing with


(SIRI) - Get Sirius XM Holdings, Inc. Report

, and I think it's a big mistake. When I

spoke with Mel Karmazin

last night on "Mad Money," I was struck by how Mel's delivered everything he promised, and then some.

He's got a $5 billion company with tremendous upside. Compare that with the $17 billion business of

Clear Channel

(CCU) - Get Cia Cervecerias Unidas SA Report

that isn't growing at all. Or a radio business that, if spun out by


(CBS) - Get CBS Corporation Class B Report

, would most likely be worth more, too, because it's profitable.

TheStreet Recommends

I think the quest for profits right now -- as opposed to free cash flow -- would be wrong for Sirius. This market's only used to going for earnings, but there was a time in the buildout of cable when all we looked at was cash flow, and we were thrilled to own those stocks.

The skepticism for this satellite business was right. The two companies,


( XMSR) and Sirius, had contempt for the shareholders and spent money like crazy. Their acquisition costs were out of control. Their willingness to pay anything for talent was cataclysmic.

Not anymore. Acquisition costs are going down. Business is less lumpy. I can see this network having hundreds of millions of dollars in commercials and twice its number of subscribers next year at this time because it is loved.

Plus, XM has blinked! It's ratcheted back spending and is not going to get into a price war, a content war or a subscriber war with Sirius. It has seen the light and the need for a benign oligopoly.

I was hoping for a combination of the two at some point. But two things have changed: This was the

breakout quarter for Sirius, and I don't think this new Congress would look kindly on a merger. We now have to deal with the notion that competition is good for the consumer, and the Congress is now pro-consumer.

So, let them sell. Let the brokerage houses downgrade Sirius, as Wachovia did this morning. The stock, after hurting people for years, is now done hurting people.

Worth buying. Worth buying right here.

Random musings:

College students, listen up!


is offering you something special... a free subscription through May 31, 2007. The only requirement: You must have an email address that ends in .edu. Email

to accept my personal invitation to come read my blog every day, plus all the other writers on that great site. Pass it on!

CBS owns CBS Radio, which broadcasts Real Money Radio With Jim Cramer, on select CBS owned and operated radio stations. At the time of publication, Cramer had no positions in any of the stocks mentioned in this column.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from