Hello Valuespec, I've followed you for a while. I do agree with you about the license value. I'm sure your aware that these licenses were sold in a closed auction and sold today,in the open market, they would bring much..much more. However, CD Radio is a pure technology play and the management has shown a focus that should not be underestimated. Right now,imho, the only thing standing between a 30 and 100 dollar stock price is time, I don't know if I could say that about SKYC. Two of the analysts following CD Radio today raised the year end target price from 39 to 45 and 48. The rise was based on the IC chip set contract and according to Lehman Bros. the target price doesn't include the 50% revenue sharing that Cd Radio is getting for the 20 commercial news and sports stations. Nor does it include the fact that CD Radio has only 16 million shares with only 1/3 of the money still needed to be raised and with almost all the risk gone. I wouldn't be surprised to see CD Radio end up with about 25% below the amount of shares the analysts have been working the numbers from. The last two items have not been added to the target price and the remaining monies will be raised this year, after that is completed we should see the target prices raised again to somewhere in the neighborhood of 55-60, imo. Although, I'm sure both companies will eventually see much higher stock prices,
I believe CD Radio is the company to own for the satellite radio play.
good luck to you-
cheers |
