XM Satellite Radio Holdings Inc. (XMSR) Message Board

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

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From: Sirius_Rich	7/20/2006 10:52:49 PM
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XM Satellite Shares Pressured By FCC Dismissal R.M. Schneiderman, 07.20.06, 4:40 PM ET Despite the Federal Communications Commission's decision to dismiss XM Satellite Radio Holdings' new certifications, the company should be able to find its way back on track before the fourth-quarter selling season, said Deutsche Bank Securities on Thursday. "In some ways investors are back at square one in assessing this regulatory risk," said James Dix, an analyst for Deutsche Bank. "We continue to believe that XM (nasdaq: XMSR - news - people) will obtain a certification allowing use of FM modulation that both complies with FCC requirements and is commercially viable." Nonetheless, Dix said the XM's stock may come under pressure from the FCC's refusal to accept XM's proposed fixes for FM modulators used in plug-and-play units, which comprise roughly 75% of the firm's retail sales. Yet he added that the company should be able to apply to reinstate the dismissed certifications within months and obtain the "necessary certifications to avoid fourth-quarter selling season disruptions." Dix maintained a "buy" rating and a $24 target price on the XM shares.

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