Jay_DeWitt
05-30-2006, 06:37 PM
The information below is my own personal opinion based on my research and on news and other analyses that I have read, which lead me to make the decision to invest in Sirius Satellite Radio. Always make sure that you are investing for the right reason, because you think it’s a good idea, not because someone else said it was, and always look before you leap.
1) Recent forecasts – While XM issued statements lowering forecasts for new subscribers on the year, Sirius issued statements that their expectations are still high, and their forecasts are as strong as ever. Some analysts are predicting that, in time, Sirius satellite radio will indeed surpass XM (their main competitor), and, in time, even terrestrial radio.
Detractors still claim that the average American will never pay for radio, when they can get it for free. I wonder if these are the same people who claimed that no one would pay for cable television, when they could just turn on your TV and get the networks for free or that no one would ever pay for bottled water, when you can just turn on the faucet.
2) Trouble at XM – Between dropping subscriber estimates, lawsuits from the music industry, the resignation of a top executive, and a class action suit by some of their own shareholders it seems like XM can’t catch a break these days. XM has even launched a plan to introduce some music stations with commercials thus dismantling its “commercial free radio” selling point that has been such a popular draw with its subscribers.
If XM should fail, or continue to alienate its listeners with the introduction of more commercials, it seems doubtful that XM subscribers would return to regular radio after being given the option of commercial free radio. Sirius is poised to reap that benefit, if XM’s listeners start to bail for greener pastures
3) Howard Stern – Love him or hate him; he’s the top draw in radio, and whether you think he’s the King of all Media or the King of all SmutPeddlers there is one thing that no one can deny; he knows a little something about how to build a successful radio empire.
If you have found yourself saying, “I’ll never invest in Sirius Satellite radio, because I hate Howard Stern”, then you are being shortsighted from an investor’s perspective. Howard Stern has managed to bring several million of his listeners to satellite radio. Sirius forecasts have been going up every quarter since Stern signed with Sirius, and they are adding thousands of listeners a month many of whom will be making their decision of which service to choose based on Sirius’ presentation of the Howard Stern show. Plus now that the lawsuit with CBS has been settled, Stern fans will have access to all of the old classic Stern shows that made him a household name (and a dirty word) over the last twenty years.
4) Strong Leadership – Sirius CEO is Mel Karmazin, who, in the past, has been the CEO for CBS, the President and COO of Viacom, and sat on the Board of Directors for both Westwood One, and Blockbuster. This guy knows a little something about the entertainment industry.
Sirius has also signed deals to broadcast shows including such successful entities as Howard Stern, CNBC, CNN, Martha Stewart, ABC News, Maxim, NPR, Radio Disney, and Playboy Radio, and they continue to sign a large amount of talent from an eclectic range of interests.
5) Low Price – Sirius is currently trading at under $5.00 per share, which most analysts agree is undervalued. Basic stock buying strategy is this: Buy low and sell high. Investing in Sirius could provide a large return on your investment, and at such a low price point a smaller investment would buy a greater number of shares, which could in turn reap a huge benefit if the analysts are correct.
Simply put; if Sirius goes up even a quarter point, that represents an increase of 5%. How many investments can you get a 5% return on a quarter point increase?
6) Catholic Channel – If investing with Sirius is causing you some morality pangs, because of the presence of Howard Stern, then maybe this will help balance you out. The Archdiocese of New York and SIRIUS have signed a deal to create and collaborate on The Catholic Channel. The lifestyle radio channel will air nationally seven days a week, 24 hours a day and will feature contemporary talk, music programming and live daily masses from St. Patrick's Cathedral in New York. The Catholic Channel will feature a modern format with an open dialogue focused on Catholicism in the 21st Century, especially as it is lived in today's world. Listeners will be encouraged to call in to talk about the issues that are on their mind and in the news
Seeing as there are several million Catholics in the US, who might be interested in keeping in touch with their faith, and with people who share their ideals, this sounds like it could be a great draw for new subscribers.
7) Portable Equipment – This summer Sirius is planning to introduce its first portable player, making Sirius available in the same manner as an IPod or walkman. Subscribers will have the new option of taking Sirius with them for their daily jog, or to the gym for their daily workout. What if you had an IPod that could carry 60 different program feeds and literally tens of thousands of songs?
8) NASCAR – In addition to the broadcasting games from the NFL. Starting in January 2007 NASCAR will be joining the Sirius family of programming. NASCAR fans number in the millions these days, and their loyalty if fierce. XM currently has the exclusive NASCAR contract which expires at the end of this year. XM subscribers who expect to find NASCAR programming will be looking to make the leap to Sirius to follow all of their favorites. Sirius has already announced a new NASCAR show hosted by Tony Stewart to give a forum to NASCAR fans to chat with their favorite drivers.
1) Recent forecasts – While XM issued statements lowering forecasts for new subscribers on the year, Sirius issued statements that their expectations are still high, and their forecasts are as strong as ever. Some analysts are predicting that, in time, Sirius satellite radio will indeed surpass XM (their main competitor), and, in time, even terrestrial radio.
Detractors still claim that the average American will never pay for radio, when they can get it for free. I wonder if these are the same people who claimed that no one would pay for cable television, when they could just turn on your TV and get the networks for free or that no one would ever pay for bottled water, when you can just turn on the faucet.
2) Trouble at XM – Between dropping subscriber estimates, lawsuits from the music industry, the resignation of a top executive, and a class action suit by some of their own shareholders it seems like XM can’t catch a break these days. XM has even launched a plan to introduce some music stations with commercials thus dismantling its “commercial free radio” selling point that has been such a popular draw with its subscribers.
If XM should fail, or continue to alienate its listeners with the introduction of more commercials, it seems doubtful that XM subscribers would return to regular radio after being given the option of commercial free radio. Sirius is poised to reap that benefit, if XM’s listeners start to bail for greener pastures
3) Howard Stern – Love him or hate him; he’s the top draw in radio, and whether you think he’s the King of all Media or the King of all SmutPeddlers there is one thing that no one can deny; he knows a little something about how to build a successful radio empire.
If you have found yourself saying, “I’ll never invest in Sirius Satellite radio, because I hate Howard Stern”, then you are being shortsighted from an investor’s perspective. Howard Stern has managed to bring several million of his listeners to satellite radio. Sirius forecasts have been going up every quarter since Stern signed with Sirius, and they are adding thousands of listeners a month many of whom will be making their decision of which service to choose based on Sirius’ presentation of the Howard Stern show. Plus now that the lawsuit with CBS has been settled, Stern fans will have access to all of the old classic Stern shows that made him a household name (and a dirty word) over the last twenty years.
4) Strong Leadership – Sirius CEO is Mel Karmazin, who, in the past, has been the CEO for CBS, the President and COO of Viacom, and sat on the Board of Directors for both Westwood One, and Blockbuster. This guy knows a little something about the entertainment industry.
Sirius has also signed deals to broadcast shows including such successful entities as Howard Stern, CNBC, CNN, Martha Stewart, ABC News, Maxim, NPR, Radio Disney, and Playboy Radio, and they continue to sign a large amount of talent from an eclectic range of interests.
5) Low Price – Sirius is currently trading at under $5.00 per share, which most analysts agree is undervalued. Basic stock buying strategy is this: Buy low and sell high. Investing in Sirius could provide a large return on your investment, and at such a low price point a smaller investment would buy a greater number of shares, which could in turn reap a huge benefit if the analysts are correct.
Simply put; if Sirius goes up even a quarter point, that represents an increase of 5%. How many investments can you get a 5% return on a quarter point increase?
6) Catholic Channel – If investing with Sirius is causing you some morality pangs, because of the presence of Howard Stern, then maybe this will help balance you out. The Archdiocese of New York and SIRIUS have signed a deal to create and collaborate on The Catholic Channel. The lifestyle radio channel will air nationally seven days a week, 24 hours a day and will feature contemporary talk, music programming and live daily masses from St. Patrick's Cathedral in New York. The Catholic Channel will feature a modern format with an open dialogue focused on Catholicism in the 21st Century, especially as it is lived in today's world. Listeners will be encouraged to call in to talk about the issues that are on their mind and in the news
Seeing as there are several million Catholics in the US, who might be interested in keeping in touch with their faith, and with people who share their ideals, this sounds like it could be a great draw for new subscribers.
7) Portable Equipment – This summer Sirius is planning to introduce its first portable player, making Sirius available in the same manner as an IPod or walkman. Subscribers will have the new option of taking Sirius with them for their daily jog, or to the gym for their daily workout. What if you had an IPod that could carry 60 different program feeds and literally tens of thousands of songs?
8) NASCAR – In addition to the broadcasting games from the NFL. Starting in January 2007 NASCAR will be joining the Sirius family of programming. NASCAR fans number in the millions these days, and their loyalty if fierce. XM currently has the exclusive NASCAR contract which expires at the end of this year. XM subscribers who expect to find NASCAR programming will be looking to make the leap to Sirius to follow all of their favorites. Sirius has already announced a new NASCAR show hosted by Tony Stewart to give a forum to NASCAR fans to chat with their favorite drivers.