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Sirius Stock Back on the Dollar Menu

Sirius XM

After languishing in near-penny-stock territory for the last year, Sirius XM Radio stock hit the dollar menu on Wednesday, topping out at $1.05 a share. Investors who bought their stock a year ago when it sold for less than 20 cents are probably cheering. Sirius hasn’t seen the plus size of one buck since September of 2008.

The prevailing opinion on Wall Street seems to be that investors think Sirius XM has finally gotten its financial affairs in order, along with adding a net of 257,000 listeners–more than expected–in the fourth quarter of 2009.

There also seems to be a growing confidence that, despite all the recent hoopla, Howard Stern will sign a new contract with Sirius. I don’t really understand how that’s a strong sign of strength for Sirius, although I guess it can be seen as a indicator of stability. If Sirius has to cough up another $300 million to keep Stern I really wonder if it will really be worth it. Even given Stern’s recent headlines over his claimed invitation to join American Idol, I doubt he has the magnetism to draw a significant number of new listeners. At best, Sirius can hope to hold onto the current crop of die-hard Stern fans.

But, then again, getting the stock price over $1 is only a relative achievement. Although the increase will likely help the company avoid a reverse stock split. Sirius’ viability will depend on how costly it is to retain Stern and how well it can continue to add listeners, despite very few new receivers being announced at last month’s CES.



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11 Responses to Sirius Stock Back on the Dollar Menu

  1. Ron February 17, 2010 at 10:23 pm #

    You may want to correct the high for sirius, it was $1.15 not $1.05.

  2. Allen February 18, 2010 at 5:08 am #

    It did hit $1.15, but closed at $1.05.

  3. MASSIVE BUYING February 18, 2010 at 5:09 am #

    NOW THAT SIRI IS ABOVE A DOLLAR MASSIVE BUYING FROM MUTUAL FUNDS WILL OCCUR.

    MEL IS IN OUT OF POCKET AT AROUND $6.00 WITH OVER $40 MILLION DOLLARS INVESTED.

    HE SAID HE WILL NOT LET SIRI GO UNLESS HE GETS DOUBLE DIGITS IN THE SHARE PRICE SO WE ARE LOOKING AT LEAST $10.00 A SHARE.

    GOOGLE, MICROSOFT LIBERTY WHO WILL MARRY SIRI.

    LAHELM………

  4. POSITVE OPTION ACTVITY February 18, 2010 at 5:11 am #

    CALL TO PUT RATIO WELL ABOVE NORMAL.

    THIS IS VERY BULLISH.

  5. MUTUAL FUNDS BUYING February 18, 2010 at 5:18 am #

    I’t’s true it will take a couple of days for the filings and then the buying will occur.

  6. Radio S Fan February 18, 2010 at 9:34 am #

    If you like Sirius XM then see their “rags to riches” story on DVD. The movie is called “Stock Shock” and it goes over the history, development, and near-death experience of the stock. I did not know the inventor of sirius xm was a woman!–well she is now, at least. DVD is cheaper at http://www.stockshockmovie.com, but the DVD is pretty much everywhere for sale.

  7. Chick Garcia February 18, 2010 at 9:35 am #

    Consider the benefits to SiriusXM as the auto market gets healthy worldwide. Then consider an Apple/SiriusXM marriage. Combine both with the Mutual Funds powerful ability to acquire high volume shares. The stock should hit $5 then onto to $10 and higher. Mel knows how to keep a good investment healthy.

  8. MS February 18, 2010 at 12:57 pm #

    I can’t understand how anyone can think that sirius xm has any kind of long term viability. I was an xm subscriber for a few years, and I can tell you the following: The sound quality sucks, and the programming is hit or miss. I got an iphone and listen to internet radio for FREE. That’s the future, not satellite.

  9. Allen February 18, 2010 at 1:59 pm #

    You were A XM Subscriber For years, well I have been A serius Subscriber for years. WoW story sounds the same oh yea but the part about the sound (hog wash) The sound is better then any radio station could ever achieve digital does it get any better? It would cut out ocationally but with the addition of serius 5 the new satelite the problem is almost a non issue.After all it is the most powerful satelite to date in the sky.Oh yea you can plug your Ipod into the serius skydock and listen to serius on it to.

  10. ChuckD February 18, 2010 at 10:21 pm #

    Mutual Funds already have significant positions in SIRI,Vangaurd, Blackrock, Oppenheimer just to name a few all hold millions of shares. Here is a link with a long list of them.
    http://moneycentral.msn.com/ownership?Symbol=SIRI

  11. MS February 19, 2010 at 11:11 am #

    I got a special satisfaction throwing my XM myfi against an asphalt road. RIP.

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