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

To: pcstel who wrote (2950)	10/13/2006 12:54:23 PM
From: rrufff	Respond to of 3386

XMSR mentioned in Motley Fool article fool.com When you invest, you are by necessity taking a risk on future events, chief among them the company's ability to generate free cash flows at a sufficient level in the future to validate your buying at the current price. Look at the moonshot companies from 2004: Sirius, XM Satellite Radio (Nasdaq: XMSR), Overstock.com (Nasdaq: OSTK), Taser (Nasdaq: TASR). It is not enough to buy a stock and hope that other people buy it and push the price higher. Obviously that may have a short-term impact, but a price gain without a commensurate improvement in fundamentals only adds to the risk of loss. I heard it put extremely well the other day: Risk is not a knob. An increase in risk does not necessarily mean that there will be an increase in return. Which of these companies saw their cash-flow-generating potential grow so that the price at which they're quoted now isn't simply another risk factor for investors?