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Can Sirius XM Maintain Its Momentum?

Sirius XM's stock has risen 68.7% over the past month, but whether it can keep this momentum going remains to be seen. users: which way do you think the stock is headed?
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Sirius XM

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

roared pass $1 for the first time since 2008 Wednesday, stirring up excitement among its loyal investors and prompting analysts to consider raising their price targets for the company. At the same time this much-anticipated (read: begged for, hoped for, by Sirius XM investors) has sparked significant discussion about what it all means for the company and its investors.

The consensus among

Sirius XM

equity analysts is that the stock's accomplishment almost, if not completely,

removes the threat of the company being delisted by the NASDAQ

, if it can keep it up for 10 consecutive business days. The unpalatable notion of performing a reverse stock split to prop up its prices would, in that case, become a distant memory for Sirius XM.

In truth, many investors had seen the move coming. Sirius XM shares, after all had been swelling in volume before they finally

broke through the critical barrier.

"It's a good sign any time volumes go up in terms of demand and supply dynamics," Standard & Poor's analyst Tuna Amobi said.

Still, the psychological effect this event had had on investors is undeniable. For many, this was yet another sign that they had been right about the stock's potential all along.

Now they could also breathe a sigh of relief. "Whether or not

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delisting was an actual threat remains to be seen, but we don't even have to worry about it at this point," Jack Hain, an analyst at Barrington Research said of the delisting threat.

Amobi isn't drawing any firm conclusions about Sirius XM just yet, and says he wants more data points on the retail side of the company's business first. He notes that the company struggled on that side of the business over the last year or more and its auto OEM (original equipment manufacturers) business picked up most of the slack. How long this can keep working remains to be seen.

Hain says the diminishing significance of the retail side of the business is less a function of failure on Sirius XM's part than a shift in the company's strategy. Hain points out that Sirius XM's growth is now very much tied to the growth of the auto economy.

SIRIUS XM plans to release fourth-quarter and full-year 2009 financial and operating results on Thursday, February 25, 2010. Between now and then investors will no doubt be keeping their eyes glued on Sirius XM's stock price.

Sirius XM's stock has risen 68.7% over the past month, but whether it can keep this momentum going remains to be seen.

users: which direction do you think the stock is headed?

-- Reported by Andrea Tse in New York


>>Sirius XM Stock Breaks the Buck Barrier

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