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Technology Stocks : Satellite Radio & Competing Technologies -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (176)	1/7/2009 6:23:32 PM
From: i-node	Read Replies (1) \| Respond to of 180

>> I can see bankruptcy in the future of Sirus-XM radio, but without the debt it might be possible to make a profit. Yeah, that's where they're headed. If you get rid of the debt, the company will be fine going forward. But had XM stuck with its fixed cost burden from '04, even with its debt it could have been successful. The mistake was an amateurish one, in ramping up fixed costs prematurely on the basis of perceived growth that may not continue. It didn't. Both companies would be in far better shape today had Stern never entered the picture. IMO.