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

To: pcstel who wrote (5172)	9/21/2006 1:33:47 PM
From: i-node	Read Replies (1) \| Respond to of 8420

>>> Stern is most certainly making a profit on a Cash Basis! Any first year accounting student can tell you that cash is not an appropriate metric for measuring financial performance. Period. End of story. This is the reason it is not permitted by GAAP, by the SEC, by the IRS, or any other regulatory agency. Quoting the Financial Accounting Standards Board and its predecessor, the Accounting Principles Board, "The Cash Method is not a comprehensive basis of accounting." Trying to use cash to measure income is precisely what Mel Karmizan would have you do. While he tells Siriots, "We'll be at cash flow breakeven this year", he conveniently neglects to mention that Sirius will sustain an ecomonic loss of well over a billion dollars this year, probably in the range of 1.2-1.3 Billion if they make their guidance (which is unlikely). he is still making them cash flow positive based on figures provided 9 months ago of 1.1 million X $155 a year per subscriber. Perhaps you don't get this, but there are other costs to provide the service for a "Stern" subscriber amounting to almost 1/3 of the revenue stream. And we haven't even started talking about Ad Revenue. Thus far the ad revenue from Stern is less than impressive -- and even that was based on guesstimates of how many listeners might make the trip. Since the number has turned out to be far fewer than anticipated, ad revenue is likely to go the other direction. Once again, your arguments are devoid of logic, lack even a basic understanding of financial concepts, and have become nothing more than personal attacks on me. I expect it of rruff and Rich, but I once had a little respect for your positions.