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

To: pcstel who wrote (5951)	1/19/2007 1:14:23 AM
From: i-node	Read Replies (1) \| Respond to of 8420

The business continues into the future, and only the common shareholder gets screwed. After all.. You are the benefactor of the last round of shareholders that got taken to the cleaners. No reason to think it won't be any different this time. While your concept of what might happen is accurate (i.e., common shareholders get wiped out) in the event of a bankruptcy, it is far too early to be thinking in those terms at this point. Any bankruptcy would be years down the road, if it occurred (after further borrowing accompanied by further dilution) and would come to pass only if sufficient subscribers aren't had to reach breakeven. Nobody wants a business that will just "break even". But Net Income breakeven is within view for XM, and is still conceivable with Sirius. If your scenario, where churn overtakes gross additions, should materialize, perhaps bankruptcy will be in the future. XM grew subscribers by 29% last year, even with all its problems, and did so pretty cost effectively. These are not Iridium all over again, much as you like to characterize them as such.