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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (410)	11/25/2002 11:25:41 PM
From: i-node	Read Replies (1) \| Respond to of 3386

they tell you Churn is "Very Low". So they know what it is. But, don't tell you? There simply is not one shred of evidence to suggest that deactivations are significant in number, and there is a great deal of anecdotal evidence that subscribers are extremely committed to the product. Why do you persist with what is apparently a molehill, not a mountain? Assuming, arguendo, that losses are significant, it wouldn't make any difference. Just think of it as another piece of hardware necessary to make the service work. It is another satellite. It has a cost. And that cost must be incurred as part of getting the business off the ground. It isn't as though every subscriber the business adds, from now on, is going to cost $100. They also show 37 million in Sales and Marketing ($575 per net add) and almost 12 million in subsidies ($180 per net add), yet tell you Acquisition Costs were only $130? Does that sound correct? I mean were not even talking horeshoes and hand-gernades close! You're trying to extract detail from external financial information that isn't present, and need not be. I'm not sure where you're going with all this. Do you think you're being lied to by management? Do you find it difficult to believe the tremendous success of the product in the marketplace? That almost nobody who has tried the product will part with it? To an overly skeptical individual, these could sound like danger signs. To someone who owns the product, it is all perfectly reasonable...