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Technology Stocks : Sirius Satellite Radio (SIRI)
SIRI 20.60-0.3%Dec 26 9:30 AM EST

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To: John Dough who wrote (4614)7/27/2006 11:43:06 AM
From: Michael Young  Read Replies (1) of 8420
 
Probably just an issue of relative valuation. SIRI has more operational momentum at the moment, but also has a much, much more expensive stock price. Almost double in fact.

Also SIRI trades at 17 times revenue, while XMSR is at 5 times revenue. So SIRI probable needs to take another big dive before XMSR can drift much lower.

Its not like equity holders in either company can have much hope for the future. At some point both will wipe out the common and recapitalize.

MIKE
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