SSD first of all congrats on picking some up, I do agree with Doughboy; "a little expensive".
Sirus is hoping to have 1 million subscribers by year end, XM has 3 million.
Sirus has lost over $500 million in the last twelve months.
-traded at the start of today at 150X revenue
it has a large float and growing debt.
if you can use the money I would take some or all of it off the table. If you want to keep some and see if it can make another run, then that is fine. Just have a stop loss in place on your remaining positon.
would take a gain on some of your position, especially since you state you have uses, for the money.
checked out the options, another way to play it, not bad, would have expected a higher premium on some of the calls, I mean the stock goes up and down 5% a day.
the question is how much can these satelites companies grow, and how fast. I do like the idea of that they are developing an IPOD like device so you could take your radio anywhere. this would add to the subscribers.
should note they are coming to Canada next year, as soon as CRTC gives approval. though know some Cdn.s who have them already. it costs $250 for a system for the car cdn. at least that is how much it would cost me.
believe it will go over big in cdn. I only have two stations that I can get at all times, and by next year will be a customer.
another item that worries me about these companies is how much they pay for certain properties. they have to sign up a lot of subscribers to pay for Howard Stern, and the NFL.
XM signed a deal with MLB, they estimated they would have to sign up 700,000 subscribers per year (for the life of the deal) to pay for it.
good luck with the stock, would rate it a sell/hold, (take most of your gains); but may if I were you may keep a small amount to see if it goes on a run.
thanks
selkirk
