Satellite Radio & Competing Technologies Message Board

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Technology Stocks : Satellite Radio & Competing Technologies

SIRI 21.89

+0.9%

9:30 AM EST

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From: i-node	4/26/2005 9:56:10 AM
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Bank of America's channel checks indicate the heaviest-ever hardware promotions by XMSR and SIRI in May and June, rather than later in the year as some investors expect. The firm maintains its Q2 subscriber acquisition costs for XMSR, but sees negative implications for SIRI. Firm raises its Q2 subscriber acquisition costs to $185 from $155, 2005 to $155 from $144, and reduces 2005 cash EBITDA to ($530m) from ($510m), below company guidance of ($480m). Another reason the firm prefers XMSR is that its data source indicates XMSR's Q1 retail market share rose to 63% from 56%, while SIRI declined to 37% from 44%. The firm would look to Buy XMSR on any weakness caused by pricing. === Lehman - Prefer XMSR over SIRI due to strong OEM presense, tech leadership - The broker is impressed with XMSR's ability to grow the sub base while keeping costs in check. === XM Satellite-XMSR buy weakness,less impact from pricing & share gains vs SIRI@BOFA The firm believes XMSR's portable product is gaining share and is better positioned and priced. In addition, XMSR is better funded given lower shipment costs and has a better balance sheet. === Ah, here's the genius: Despite the strong expected growth, Goldman Sachs continues to caution that sub growth ests for XMSR and SIRI are high across the street, posing a risk to the stocks even assuming solid sub additions & higher co issued yr end sub targets. Firm prefers XMSR.

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