SIRI shot up on Friday but gave a chunk of it back today. How sad. I do wounder what the last few minutes of buying on Friday was all about. Maybe a mutual fund moving in?
Sirius reported expected saving from the merger of 400 million in 2009. This news did not hold the markets attention for long and it started to trend back down.
– Open: $1.86
– Close: $2.10
– Gain/Loss from prior close: +$0.27
– Open: $2.05
– Close: $1.92
– Gain/Loss from prior close: -$0.18
The house of pain continues to move forward as we wait for the FCC ruling. I was expecting to see this stock at the $5-$6 level post ruling, providing it was favorable. Now, I expect to see it around $3-$4 a share.
At $4 a share I would be pleased; $5 would make me a very happy guy; at $6 I would be ecstatically delightful; and $7 a share, well…I would be on the next plane to Vegas and having a grand time with the wife for the weekend. Only another month to wait and see how all this will play out. Oh wait, and at $1 a share…crying into several tall glasses of rum and coke while questioning what the hell I was thinking.
I believe this merger is the best thing that can happen to these companies. They need to consolidate to compete against terrestrial based radio and iPods. Sirius and XM must work on their devices to make them more sleek and sexy. These devices should be able to record streams for offline playback if they ever hope to catch up to the Apple’s of the world.
I believe they can do this and seems to me, albeit not the most informed and certainly not on any inside track, that they are focused in the right direction. I think they have a good product and a healthy market providing they can execute on a growth strategy and that is another story that has as yet been written.