Tag Archives: SIRI

Sirius XM’s $2 Billion Buyback Raises Floors And Busts Ceilings

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By Stephen Faulkner:

It’s a simple concept really. Sirius XM’s (SIRI) $2 billion buyback program which was announced in December of 2012 creates buying pressure in the stock, and no small amount at that.

Given that Sirius XM’s market cap was roughly $20 billion at the time of the announcement, and given that approximately 50% of the company was owned by Liberty Media (LMCA) as well as roughly 30% of the company was owned by institutional investors, that left 20%, or roughly $4 billion worth of the company in the retail float. Arguably, Liberty Media would not be selling its shares anytime soon, and institutions were unlikely to unload in great quantities. That left the retail float as the provider of the lion’s share of, well … shares, for Sirius XM’s buyback plan.

Because of this, I expected that the share price of Sirius XM would have strong support and would find a


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If You Believe Sirius Is Overvalued, Think Again

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By Paid2Trade:

It sounds trite to say, but there’s never a dull moment in the land of Sirius XM (SIRI). Our recent articles, which outlined scenarios where both Apple (AAPL) and Google (GOOG) might be interested in the satellite radio giant, have caused quite the stir. With shares having reached a five-year high of $3.59 last week and resting at $3.54 (as of this writing), there is now notions that Sirius XM has grown too expensive. I disagree.

While we won’t argue that this recent rise presents opportunities for investors to secure profits, there is ample evidence that more gains are on the way. I’m not going to sit here and pretend to know where the stock is heading – nobody really does. However, what we do know is that Sirius is operating on all cylinders. And with a few improvements along the way, $4.00


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Arena NOLs Will Come Into Play Soon

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By Spencer Osborne:

It certainly did not take long for Arena (ARNA) investors to note a little statement regarding a change of control made by company management at the Bank of America Merrill Lynch Conference last week. I had my email inbox fill up with great questions and some perhaps over zealous statements about a buyout from Big Pharma in the near future.

While a buyout would be nice, there is an oft overlooked “asset” that Arena has that investors will want to begin to think about as the anti-obesity drug Belviq launches and theoretical profitable quarters begin to take shape. Arena is carrying over $1 billion in Net Operating Losses (NOLs). Net Operating Losses are accumulated during the years when a company is starting out, and can be used by that company to offset profits, this taking away tax liability in the years when profits begin to materialize.

Currently, Arena has


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Sirius XM: $3.75 In The Near Future?

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By Stephen Faulkner:

As I continue to be bullish on the prospects for Sirius XM’s (SIRI) share price in the near term, I’m going to go out on a limb and suggest that investors may see share prices approaching $3.75 in the near future.

How ‘near’ is this future? Try Monday. Or at the latest, sometime in the coming week.

Yes, that’s a 26 cent jump over Friday’s closing price of $3.49, and it would create a total rise of around 26% from recent pre Q1 release lows of $2.97. But I think the share price has enough momentum to approach that $3.75 mark in fairly short order.

Let’s consider an important issue at stake here.

Sirius XM has pledged a $2 billion buyback plan of which it had used up less than half to repurchase 209 million shares in the first quarter. This reduction in shares has effectively given each share a


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May Auto Sales Good Enough For Sirius XM

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By Spencer Osborne:

It is the middle of the month, and once again it is time to look at auto sales as they relate to satellite radio provider Sirius XM (SIRI). I provide these updates at the middle and end of each month so that investors can track the progress, and perhaps even develop a trading strategy around the news flow. If an investor can anticipate the news prior to the press reporting it, and can find the right action point going into the mainstream media reporting news, a profitable trade can be had.

For Sirius XM, the equity is running at 52 week high territory. This means good news can make a run continue, while bad news can let some air out of the tires.

For the first half of May, the auto sector is remaining at a SAAR pace of about 14.8 million. The second half of April saw sales taper


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Sirius XM: Apple? Google? What?

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By Stephen Faulkner:

Recently, I read a two part series discussing what Seeking Alpha contributor StockSaints thinks may possibly happen in the future. Namely, a bidding war between Apple (AAPL) and Google (GOOG) to buy out Sirius XM (SIRI) from shareholders and majority owner Liberty Media (LMCA). The series can be found in these two links and uses the following titles:

These articles have caused a slew of questions, comments, and various postings which seem to be spreading and gathering a bit of steam suggesting Apple and Google are now in or will soon be in a bidding war offering $4.50+ for Sirius XM. Consider the following question posed to me just this evening :

(click to enlarge)

I’ve spoken with the author, StockSaints, before, and while I think he writes well and has some very


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Today’s Market News To Trade On: 5 Stocks Moving On News

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By Matthew Smith:

Technology continues to perform strongly and with names such as Google and Yahoo setting highs and the rally taking place across a broad range of subsectors, we think that the market is signaling to us that this rally is the real deal and that 2013 will be one of those years when investors need to stay long for the entire year. Google broke through $900/share yesterday and gained strength as the session went on.

We are going through phases in this market and investors’ attention seems to have shifted back towards tech for now.

Chart of the Day:

With initial claims having fallen below the 350k level our attention now turns to the continuing claims and whether that number can fall below 3000k. This week’s number should not be below that milestone, but readers should watch for continuing improvement.

(click to enlarge)

Chart courtesy of Briefing.com

We have economic news


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Sirius XM: $3.59 And Rocking – Time To Run?

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By Stephen Faulkner:

I have been beating the Sirius XM (SIRI) at $3.50 drum since it made its sharp move after Q1 earnings were released. As I said before the conference call, investors should watch for three pieces of news:

  1. News of buybacks to have begun.
  2. News of a permanent CEO.
  3. Increased subscriber guidance.

Two out of three isn’t bad, and with the news that over 200 million shares had already been repurchased, and news that James Meyer was now in a permanent position as CEO, it seems No. 3 didn’t matter as much. The fact of the matter is the company posted acceptable results as far as performance, and little quarterly fluctuations in things like ARPU and churn, which can be impacted by such simple things as an extra day in February due to leap year are not major concerns to worry investors.

What’s happening here is that Sirius


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