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: pcstel who wrote (368)	11/22/2002 12:08:13 AM
From: i-node	Read Replies (2) of 3386

It's like giving away a razor that costs $200 to make, and saying you will make it up on the blades that sell for 1 dollar each. Subsidies too large, ARPU too small. Your analysis is terribly simplistic. It overlooks the important word "currently". Call it the cost of obtaining a new subscriber, whatever -- the reality is that it is totally anticipated startup cost. A little knowledge is a dangerous thing. One thing counts. That is the rate of growth in subscribers. The financing will happen as there are too many big funding sources who have too much at stake for it to NOT happen. The business, once these startup commitments are fulfilled, is one of the biggest cash cows you'll ever lay eyes on. A year ago I worked up ballpark break even figures and they were right on with what the company is saying. Now, XM has stated they will breakeven sooner due to cost cuts. There is every reason to believe these data. I hope it goes to 50c/share.

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