XM Satellite Radio Holdings Inc. (XMSR) Message Board

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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: RKHIII who wrote (253)	1/24/2002 9:44:35 AM
From: i-node	Read Replies (1) of 3386

Unfortunately, I think this may be a stcok for the future. I'm not sure its short-term prospects are very great until they secure the vast majority of automobile manufacturers, etc. It is definitely a long-term play for me -- five years, probably. However, it won't be five years before we see significant appreciation. As subscriptions are added, revenue edges up, and investors realize that costs are largely fixed, the market price of the stock will be taken up. The people who are thinking they're going to see $100 by year-end aren't being realistic. However, within 2-3 years I fully expect to see the stock double or triple its current price. The margins in this business are going to be high once breakeven is hit, and that's going to drive the stock price even if subscriptions aren't as fast as people hope/expect. One other thing -- unless SIRI craters, which I don't see, the situation with auto manufacturers is basically predetermined, as there is an agreement in place for additional manufacturers who get in now are going to offer radios compatible with both products.

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