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

To: pcstel who wrote (2188)	2/17/2006 1:10:44 AM
From: i-node	Respond to of 3386

>> Suicidal spending by your competition is nothing to celebrate. I think you and I finally agree on something. However, I also think that XM's management has properly framed Q4 as a "one-time event" -- the Stern Effect has peaked and is obviously on the wane. When asked when the CPGA would be back in line with prior quarters' figures, the answer was "immediately". XM's CPGA is at a very manageable level given the churn they're experiencing. Look, XM's management has been fairly successful in controlling its expenditures. Its fully diluted sharecount is maybe 20% above what it was immediately after the refinancing, which isn't bad -- everyone of us here knew that dilution would occur. Its borrowing has been mostly about capex, other than what it had to have to cover the MLB acquisition. And even in today's bad news, the silver lining was that non-marketing contribution margin was nicely improved -- which is, after all, what makes the business model such a winner. They're being bashed on the basis of confusion right now -- which is fine. Maybe you'll get a chance to cover that short, and if gets to that level I'll be mortaging the house to buy more.