Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Sirius Satellite Radio (SIRI) -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (4452)	6/5/2006 9:20:02 AM
From: sixty2nds	Read Replies (1) \| Respond to of 8420

Disclosure....I do not have a SIRI/XMSR position. "IGGY" IMO, the resident CPA type of several names gets paid. Hello Jane...errr...Britt. 08:48 XMSR XM Satellite: Amtech recommends long XMSR, short SIRI pairs trade (14.69 ) Amtech notes that both XMSR and SIRI have been poor performers, but XMSR has been hit with a succession of bad news and the stock reflects capitulation on confidence. Though it feels like a bottom is near, they have no confidence the stocks will not go lower. They do believe valuations will converge and recommend a long XMSR and short SIRI pairs trade. They note SIRI now trades at nearly 50% greater enterprise value and more than double the value per sub. XMSR has a larger OEM channel, with about automakers that 60% of annual output promoting XMSR service. They say both companies report OEM users in promotional period as subscribers, but with more aggressive accounting and longer promotional periods, they believe this is about 60% of SIRI's OEM base vs. 20% for XMSR. As these subs come up for renewal through the year, they believe this makes SIRI's churn guidance unrealistic. They recommend being long XMSR, short SIRI.