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

To: i-node who wrote (3116)	1/3/2007 3:18:31 PM
From: Sirius_Rich	Read Replies (1) \| Respond to of 3386

>>>I can't wait to hear what Mancini has to say She says: Positive FCF in 4Q06; subs in-line with MLe Sirius Satellite Radio announced preliminary results for 4Q06 indicating the quarter will be FCF positive – a milestone SIRI hoped to achieve but did not promise. MLe 4Q06 FCF of ~$28.7mm (or $0.02/sh). Achieving this milestone underscores management’s focused strategy, conservative guidance, and commitment to growth with responsible cost controls- important in the satellite radio duopoly. Additionally, SIRI announced a year-end 2006 subscriber count of ~6mm subscribers (2.7mm net adds in FY06) in-line with MLe of 5.95mm (2.6mm net adds) and management’s guidance of 5.9-6.1mm. Maintaining Buy with $7 price objective We are maintaining our Buy rating and $7 price objective on SIRI. 4Q results should allay investor concerns that a competitive satellite radio market will result in greater SAC cost that erodes the profitability of the satellite radio model. We have consistently expected retail to account for just 20% of satellite radio subscribers at maturity and have expected both XM and SIRI to be FCF positive under a largely auto model. As SIRI continues to meet/exceed investor expectations, we believe the shares will continue to move higher and investors will be able to value both companies separately rather than seeking to achieve similar enterprise values for very different operators.