Sunday, September 05, 2010

Soros buys shares of Sirius XM, for good or ill

"Last week Maxim Group initiated coverage of Sirius/XM with a “buy” rating and a 1.40 price target. It appears that most analysts share Maxim’s upbeat opinion — Reporting site Zacks shows four “strong buys,” two “holds” and zero “sells”.
  • Hedge Fund mogul George Soros got in on the action as well by purchasing 29 million convertible notes (valued at 28 million).
  • With 5.6% of SIRI’s float being short interest I think that some squeezing will begin to take effect in the near future as the bearish trades begin to unwind....

The satellite radio subscriber base at the end of the second quarter was 19.5 million which is an increase of 6% over 2009. Sirius expects to add another 1.1 million subscribers by the end of 2010, has generated higher average revenue per user, and lowered costs to help fuel net profit. Subscribers paid $11.81 per month (11 % from the same quarter in 2009) due to demand for the “Best Of” programming."...

  • (My guess is this means "Best of XM" programming available to Sirius subscribers and vice versa, such as XM 175 MLB being made available to Sirius subscribers. ed.)

(continuing): "Things seem to be continuing in the right direction for a stock that has risen from the ashes of near bankruptcy and continual scrutiny. Let us also not forget the manipulation from terrestrial radio during the merger tragedy, and the politicians who were in their pocket."...

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