Sirius Stock
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I hold a lot of it right now. I have also bought and sold this stock a few times. I am going to hold this for a long time, as I truly believe that it will either be bought out some time down the road, or it will go to the moon when earnings start turning positive.
Well, at around $3.50 a share, you can get a lot of it. Heck of a curve in that stock price since inception.
www.insideradio.com
Sirius hits free cash flow positive for the first time — but one analyst says it won’t repeat that feat.
The satcaster hit six million subs (by a margin of just 24,000) and celebrates its “first-ever quarter of positive
free cash flow.” The six million number is within Sirius’ own lowered range of guidance though smaller than what
many on the Street expected. Bank of America Securities analyst Jonathan Jacoby thinks rival XM “probably
will fall short of the low-end of its guidance range.” Jonathan makes that deduction because Sirius “likely had a
stronger quarter than XM at retail.” One more thing about the Sirius boast of hitting free cash flow positive (which
isn’t the same as “profitable”) — Jacoby thinks Sirius won’t do that again until later this year. He expects Sirius’
free cash flow “to be negative for the next three quarters.”
Sirius hits free cash flow positive for the first time — but one analyst says it won’t repeat that feat.
The satcaster hit six million subs (by a margin of just 24,000) and celebrates its “first-ever quarter of positive
free cash flow.” The six million number is within Sirius’ own lowered range of guidance though smaller than what
many on the Street expected. Bank of America Securities analyst Jonathan Jacoby thinks rival XM “probably
will fall short of the low-end of its guidance range.” Jonathan makes that deduction because Sirius “likely had a
stronger quarter than XM at retail.” One more thing about the Sirius boast of hitting free cash flow positive (which
isn’t the same as “profitable”) — Jacoby thinks Sirius won’t do that again until later this year. He expects Sirius’
free cash flow “to be negative for the next three quarters.”
I would be cautious. I suspect Sirius is going to have some churn issues — as their older equipment begins to fail in the field. Unlike XM, which has been very aggressive in replacing/handing out recievers in exchange for sub contracts, Sirius seems to be trying to cut retention costs.
While I prefer Sirius, we may end up an XM-only household because of this issue.
While I prefer Sirius, we may end up an XM-only household because of this issue.
I own about 750 shares in a custodial account for my kid's college fund I started about 5 years ago (I know.... stick with the 529 plans, but my Gateway and Nortel stock will make sure that I don't have to worry about any capital gains for a while). I bought half of them when it cost $2.25 a few years back, and the other half when it spiked to $4 (before coming back down). I then giggled in glee when it went up to $9, but didn't take any profits. Oh well. I own both Sirius and XM. These two should be printing money in a few years, unless they get stupid and overspend on programming like they did the last few years.... I'm a little worried that the increase of sales in the aftermarket radios are starting to taper downward (yikes, how jaded are we that a 82% increase is a disappointment), but the OEM installs should make up for it.
They were supposed to be printing money at 4M subs....now 150% and 200% of that and no profit in sight.
OEM was fueled by them subsidizing the cost of the unit. They expected that to end by now - because they were supposed to be printing money by now, lol.
Here is a link to the trend in SIRI recently. http://biz.yahoo.com/seekingalpha/070108/23660_id.html?.v=1.
This isa risky stock. It isa good idea to buy stocks that you know about but not sucha good idea to buy stock based on an emotional attachment. 30 shares or so is fine. But be wary of making large investments ina firm like this.
This isa risky stock. It isa good idea to buy stocks that you know about but not sucha good idea to buy stock based on an emotional attachment. 30 shares or so is fine. But be wary of making large investments ina firm like this.
I wonder where all the profit went:
http://money.cnn.com/2006/01/05/news/newsmakers/stern/index.htm
Howard Stern & Co. score $200M payout
Lump payment in stock comes as Sirius Satellite Radio exceeds subscriber targets.
January 5, 2006: 12:28 PM EST
NEW YORK (CNNMoney.com) - Radio personality Howard Stern is starting to cash in on the back of higher-than-expected subscriptions at his new home, Sirius Satellite Radio.
The company will issue Stern and his agent 34,375,000 shares of Sirius common stock on Jan. 9 as part of a previous agreement to issue the stock when the satellite radio provider exceeded certain subscriber targets, Sirius spokesman Patrick Reilly said.
Sirius (Research) shares closed at $6.36 Wednesday on Nasdaq, making the lump payout worth roughly $218,625,000.
Sirius didn't say how much would go to Stern and how much would go to his agent Don Buchwald.
Sirius said it added roughly 2.2 million subscribers in 2005, a 190 percent increase from 2004. The station now has 3,316,560 subscribers and hopes to exceed 6 million by the end of 2006, according to a company statement.
Reilly said Stern's payout does not represent an additional stock payout to his previously announced compensation package of roughly $100 million a year for five years.
He said Stern was always guaranteed the shares, but Stern could have had to wait until Dec. 2010 unless Sirius exceeded its subscriber targets in a given year.
But Reilly said Stern could receive additional shares in the future if subscriber targets continue to be surpassed.
Stern inked a deal with Sirius early in 2005 while he was at broadcaster Viacom (Research) and under fire from regulators for the content of his show, which some consider lewd.
But his contract with Sirius didn't start until Jan. 1, 2006, and Stern ran into trouble with Viacom throughout 2005 for promoting Sirius and his switch to satellite radio.
Stern is scheduled to appear on CNN's Larry King Live at 9 p.m. ET Thursday night.
http://money.cnn.com/2006/01/05/news/newsmakers/stern/index.htm
Howard Stern & Co. score $200M payout
Lump payment in stock comes as Sirius Satellite Radio exceeds subscriber targets.
January 5, 2006: 12:28 PM EST
NEW YORK (CNNMoney.com) - Radio personality Howard Stern is starting to cash in on the back of higher-than-expected subscriptions at his new home, Sirius Satellite Radio.
The company will issue Stern and his agent 34,375,000 shares of Sirius common stock on Jan. 9 as part of a previous agreement to issue the stock when the satellite radio provider exceeded certain subscriber targets, Sirius spokesman Patrick Reilly said.
Sirius (Research) shares closed at $6.36 Wednesday on Nasdaq, making the lump payout worth roughly $218,625,000.
Sirius didn't say how much would go to Stern and how much would go to his agent Don Buchwald.
Sirius said it added roughly 2.2 million subscribers in 2005, a 190 percent increase from 2004. The station now has 3,316,560 subscribers and hopes to exceed 6 million by the end of 2006, according to a company statement.
Reilly said Stern's payout does not represent an additional stock payout to his previously announced compensation package of roughly $100 million a year for five years.
He said Stern was always guaranteed the shares, but Stern could have had to wait until Dec. 2010 unless Sirius exceeded its subscriber targets in a given year.
But Reilly said Stern could receive additional shares in the future if subscriber targets continue to be surpassed.
Stern inked a deal with Sirius early in 2005 while he was at broadcaster Viacom (Research) and under fire from regulators for the content of his show, which some consider lewd.
But his contract with Sirius didn't start until Jan. 1, 2006, and Stern ran into trouble with Viacom throughout 2005 for promoting Sirius and his switch to satellite radio.
Stern is scheduled to appear on CNN's Larry King Live at 9 p.m. ET Thursday night.
http://www.usatoday.com/money/media/2006-01-11-stern-stock_x.htm
Stern gets OK to cash in Sirius stock
By Matt Krantz, USA TODAY
In case his $100 million-a-year contract wasn't enough, Sirius Satellite Radio (SIRI) has freed Howard Stern to make even more serious cash by immediately selling his $191 million in stock.
Satellite broadcaster Sirius filed the paperwork Wednesday giving the radio shock jock the right to sell the 31.3 million shares issued to him this week. His agent, Don Buchwald, who received 3.1 million shares worth about $19 million, can also sell. Without the clearance, they couldn't have started selling even in small increments until next year.
It's unknown when or even if Stern and Buchwald will sell what amounts to 2.5% of Sirius' outstanding shares. But Stern, at least, might want to consider it because:
• The proceeds could help pay the roughly $93.7 million income tax bill he faces for receiving the stock, estimates Alan Weiner of tax firm Holtz Rubenstein Reminick.
• Holding so much stock could reduce Stern's leverage when his contract comes up for renewal in 2010 because Sirius would know his shares could lose value if he doesn't renew, says analyst Kit Spring at Stifel Nicolaus.
Buchwald did not return calls seeking comment from him or Stern.
Investors won't even know if Stern is selling. He is not an officer or director and doesn't own 10% of the stock, so he is not required to file with the Securities and Exchange Commission.
The potential avalanche of stock is already creating problems. "That's why the stock is under pressure," says Tuna Amobi, stock analyst at Standard & Poor's.
The stock has been struggling since Jan. 5, when Sirius said it was giving the shares to Stern prior to 2010 because he met targets for signing up new subscribers. The stock is down 9% this year, 4% since the announcement. On Wednesday, it fell 38 cents to $6.12.
Using stock to lure stars is typical in show business. Martha Stewart Living Omnimedia said it will take a $5.5 million charge in the fourth quarter because it gave stock to reality show maven Mark Burnett, in part for creating The Apprentice: Martha Stewart. But getting a payoff from such payments can be elusive. The ratings for the show were poor, and it is not expected to return.
Sirius, though still unprofitable, already has a tangible payback from Stern. Sirius added 1.1 million subscribers in the fourth quarter, up 138% from a year earlier. Still, its 3.3 million subscribers at the end of the year was well below the 5.9 million at rival XM Satellite Radio in 2005.
Analyst Susan Kalla of Caris thinks the payments Sirius is making are worth it. Stern "put a huge amount of potential revenue in their pocket," she says.
Spring wishes Stern didn't get the shares early but doesn't think his selling would be a problem. "It's more of a psychological thing," he says.
Stern gets OK to cash in Sirius stock
By Matt Krantz, USA TODAY
In case his $100 million-a-year contract wasn't enough, Sirius Satellite Radio (SIRI) has freed Howard Stern to make even more serious cash by immediately selling his $191 million in stock.
Satellite broadcaster Sirius filed the paperwork Wednesday giving the radio shock jock the right to sell the 31.3 million shares issued to him this week. His agent, Don Buchwald, who received 3.1 million shares worth about $19 million, can also sell. Without the clearance, they couldn't have started selling even in small increments until next year.
It's unknown when or even if Stern and Buchwald will sell what amounts to 2.5% of Sirius' outstanding shares. But Stern, at least, might want to consider it because:
• The proceeds could help pay the roughly $93.7 million income tax bill he faces for receiving the stock, estimates Alan Weiner of tax firm Holtz Rubenstein Reminick.
• Holding so much stock could reduce Stern's leverage when his contract comes up for renewal in 2010 because Sirius would know his shares could lose value if he doesn't renew, says analyst Kit Spring at Stifel Nicolaus.
Buchwald did not return calls seeking comment from him or Stern.
Investors won't even know if Stern is selling. He is not an officer or director and doesn't own 10% of the stock, so he is not required to file with the Securities and Exchange Commission.
The potential avalanche of stock is already creating problems. "That's why the stock is under pressure," says Tuna Amobi, stock analyst at Standard & Poor's.
The stock has been struggling since Jan. 5, when Sirius said it was giving the shares to Stern prior to 2010 because he met targets for signing up new subscribers. The stock is down 9% this year, 4% since the announcement. On Wednesday, it fell 38 cents to $6.12.
Using stock to lure stars is typical in show business. Martha Stewart Living Omnimedia said it will take a $5.5 million charge in the fourth quarter because it gave stock to reality show maven Mark Burnett, in part for creating The Apprentice: Martha Stewart. But getting a payoff from such payments can be elusive. The ratings for the show were poor, and it is not expected to return.
Sirius, though still unprofitable, already has a tangible payback from Stern. Sirius added 1.1 million subscribers in the fourth quarter, up 138% from a year earlier. Still, its 3.3 million subscribers at the end of the year was well below the 5.9 million at rival XM Satellite Radio in 2005.
Analyst Susan Kalla of Caris thinks the payments Sirius is making are worth it. Stern "put a huge amount of potential revenue in their pocket," she says.
Spring wishes Stern didn't get the shares early but doesn't think his selling would be a problem. "It's more of a psychological thing," he says.
Stock still going up in the face of alleged merger talks.
Mel does Howard another favor and gooses the price when he wants to sell..... How much you want to bet that the merger rumor gets squashed once a bunch of the heavy stockholders cash out...?
Mel does Howard another favor and gooses the price when he wants to sell..... How much you want to bet that the merger rumor gets squashed once a bunch of the heavy stockholders cash out...?
Well with the FCC chairman making negative statements about a merger the stocks of both companies took ahit. We have had several threads on this lately. Personally I think that SIRI and XMSR are both pretty specualtive issues. If you want to take a chance with money that you can afford to lsoe go ahead but recognize the investment for what it is.
BTW takea looka t a one year chart for SIRI. It is not doing all that well. It does tick up and you can make moey on such movements but it is no sure thing.
http://finance.yahoo.com/q/bc?s=SIRI&t=1y
BTW takea looka t a one year chart for SIRI. It is not doing all that well. It does tick up and you can make moey on such movements but it is no sure thing.
http://finance.yahoo.com/q/bc?s=SIRI&t=1y
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All the speculators bailed when Kevin Martin opened his mouth. I don't see a merger ever being approved, regardless of how hard CNBC's Cramer pushes for it.....
The Oprah and Martha Stewart deals were busts for each player. Stern brought a handful of folks with him, but nowhere near the bunch he had. O & A have brought all they are going to.
The NASCAR switch to Sirius may bring a few more to Sirius from XM. XM tries to counter with Danica Patrick and IRL.
At the end of the day, I come for the music and baseball on XM and the music and football on Sirius. everything else gets just a passing listen (OK, I listen to Playboy every now and then. I'll never look at Pilar, the model who holds case #14 on Deal or No Deal the same way again .. she's a Texas girl who was a playmate and hosts a show at 1pm ET)
The Oprah and Martha Stewart deals were busts for each player. Stern brought a handful of folks with him, but nowhere near the bunch he had. O & A have brought all they are going to.
The NASCAR switch to Sirius may bring a few more to Sirius from XM. XM tries to counter with Danica Patrick and IRL.
At the end of the day, I come for the music and baseball on XM and the music and football on Sirius. everything else gets just a passing listen (OK, I listen to Playboy every now and then. I'll never look at Pilar, the model who holds case #14 on Deal or No Deal the same way again .. she's a Texas girl who was a playmate and hosts a show at 1pm ET)
