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

To: sixty2nds who wrote (2198)	2/17/2006 10:57:58 AM
From: sixty2nds	Read Replies (1) \| Respond to of 3386

09:47 XMSR XM Satellite downgrade details (23.45 -0.53) -Update- As we noted in our 9:15 comment, Sanders Morris Harris downgraded XMSR to Hold from Buy following their analysis of the co's Q4 results. Firm expects the shares to be volatile but range-bound over the next few months. The firm says that the Street largely has adopted XMSR's guidance of 20 mln subs by 2010, although they point out that the costs associated with achieving this continue to creep higher. For example, their 2010 free cash flow est of $1.1 bln from a year ago has eroded to below $800 mln today due to creep in expenses. Importantly, they see no signs that cost escalation will stop. Q4 cost per gross addition was 1.5 times what they had expected. Most recently, the firm notes, XMSR spent $55 mln for 3 years of "Oprah," even though historical content deals have not resulted in noticeable step functions in incremental subscriber additions