Sat radio wont fly, no matter what the Wallstreet pumpers tell you. It wont ever be profitable. Let's take SIRI for starters...
On a recent conference call SIRI said we may have up to 40,000 radios available by Q4. key word "MAY"
SIRI has ZERO sales, ZERO Revs, ZERO radios installed.
SIRI has a EPS of -$4.75
SIRI needs 4 million subs to break even. Well, ummm, Martha they MAY only have 40k radios by the end of this year.
They need to raise more money, a few options junk bonds, or Dilution. The Junk Bond market is basically closed to this idea, and that leaves Dilution.
"Although the rival satellite-radio ventures have already spent about $1 billion each, both say they need to raise even more money this year to keep afloat "
"Sirius, which won't launch until late this year thanks to delays in the development of chips for its radios, is comfortable with Wall Street expectations that it will have fewer than 50,000 subscribers by the end of this year, reaching the million milestone sometime in 2003 and breakeven sometime in 2004 or 2005. In an effort to shore up its business, which depends on subscription fees for about 85% of revenue, Sirius this week announced it was raising the monthly fee it plans to charge to $12.95 from the $9.95 rate both Sirius and XM had been planning for years. Company officials insist that the increase won't deter consumers."
EBITDA (ttm) -$116.1M
Wall Street doesnt need another, "oh we will be EBITDA breakeven in 2004" stock. Come on we have see that story before and we know how it ends.
Check out these links for a similar technology available worldwide,,
worlddab.org
boschmultimedia.de
Have you ever heard of this service? Its not very popular.
BTW the last opinion I posted was on DSLN at that time it was trading at @10 bucks now $1 |
