Terry,
Based on the chart and the over-bought but bullish run that SIRI has made in recent weeks, I believe that it was/is a great second tier play that has gone unnoticed until recently because XM has taken the stage and been in the lime light.
Toyota Vehicles to Offer Satellite Radio
12/7/2004 4:55:00 PM
DETROIT, Dec 07, 2004 (AP Online via COMTEX) -- Toyota Motor Corp. will offer XM Satellite Radio as a factory-installed option in Toyota and Lexus vehicles beginning in 2006, but customers also will be able to order rival Sirius Satellite Radio at Toyota dealerships starting next year. Sirius shares rose sharply Tuesday, as both companies' stocks hit new 52-week highs.
XM, the market leader with roughly 2.5 million subscribers to Sirius' 800,000-plus, already is available as a dealer-installed option on 10 Toyota and Lexus models, and that number will grow in 2005. Sirius said its equipment will be available as a dealer-installed option on nine Toyota and Lexus models beginning in February.
Wall Street welcomed the deals, even though Sirius and XM already have partnerships with several other automakers. Analysts said that simply increasing the number of vehicles on the market equipped with satellite radio is a plus for both companies.
"In three years, for example, when somebody goes to sell that vehicle, (the new owner) could become another subscriber," said April Horace, an analyst with investment banking firm Janco Partners.
marketwatch.com;
I can envision SIRI piling up a lot of new revenue based on its growing subscriber base coupled with the last paragraph in the above snippet from the news release yesterday.
Speaking on a shorter term basis, I don’t see anything bearish about it's chart. (Yet)
139.142.147.218
Reid |
