Sergio,
The 75 million share offering is probably going towards marketing the products. Both XM and Sirius have quite a bit of dilution in order to really get their businesses started and subscriptions up.
Sirius is doing radio broadcasting but also using its satellites for business multimedia broadcasts /tv- and there are many other potential uses and expansion possibilities.
Once the fundamentals improve, there will probably be a reverse split - some are guessing when the stock hits $6, it will go for a reverse 3 for 1 and become an $18 stock. By this time, the company should have their business plan under further progress/ subscriptions up, more sales of their small hand-held units, more sold to the car dealers, more businesses using their multi-media services, perhaps broadcasting motion pictures to theaters, etc.
Possibly this could have some interest in BestBuy, Fry's, etc. for Christmas sales?
There are only 2 companies with this radio service licensed (SIRI and XMSR) but this could be an inroad in a broader based SAT business for both, :)
Any thoughts?
Thx!
J |
