Any advice on SIRI Stock!!

[abumhira]

Hello everybody. Does anybody have any advice with SIRI stock? I am thinking to buy it?

Do you recommend it?

[Scanner]

I enjoy discussions on speculating as I do think many here don't speculate enough in their portfolios.

I don't know squat about Sirius radio. I looked at the technicals from Yahoo! and it has apparently slowly declined in value over the last 2 years although mildly appreciated the last 5 years.

The hardest part of buying a stock is researching the fundamentals and even then, the pros can get into trouble when accountants get creative with statements.

From a global trend standpoint, I would think Satellite Radio is well positioned to grow, especially as cell phones get more and more network capability and seek to combine with Ipods/Iphones.

I'm personally not a listener but I don't make judgements on me.

Sorry I can't be more helpful.

[Thrif-t]

I do know they are going to be merging with XM so hopefully that will make their price go up.

[humandraydel]

Right now everything about SIRI hinges on whether or not the merger with XM goes through. If it does, SIRI will probably surge to at least $4 and maybe $4.50. If it doesn't go through the stock will be in BIG trouble. So, are you a bettin' man? Personally, I don't mind some well founded speculation, but I wouldn't touch this with a 10-foot pole.

[Thrif-t]

Right now everything about SIRI hinges on whether or not the merger with XM goes through. If it does, SIRI will probably surge to at least $4 and maybe $4.50. If it doesn't go through the stock will be in BIG trouble. So, are you a bettin' man? Personally, I don't mind some well founded speculation, but I wouldn't touch this with a 10-foot pole.

mmm, I didn't realize it wasn't a sure thing that they were merging with XM?

[Scanner]

This is why I prefer to speculate on commodities vs. stocks.

You bet on people on stocks, not things and people are never a good bet. Who the hell knows if they will merge or not? (insiders - that's who only knows).

To the good stock speculators, I tip my hat to you.

To all that bought oil when I said buy at $55/barrel, you may now proceed to worship me.

[humandraydel]

mmm, I didn't realize it wasn't a sure thing that they were merging with XM?

When the FCC approved use of satellites for radio, they created two licenses and mandated that no company will ever own both licenses. This is ensure there is no monopoly. For the merger to go through, the FCC has to change its mind on this decision and allow one company to own both licenses, essentially turning satellite radio into a monopoly. There has still not been an official decision on whether the FCC will allow the merger.

[Hypersion]

Looking at it fundamentals the company has a negative networth and has a large negative free cash flow.

I would stay away.

[InDebtInDC]

Looking at it fundamentals the company has a negative networth and has a large negative free cash flow.

I would stay away.

How did you calculate net worth, and what does "free cash flow" mean?

[Jaun22]

I have not heard much about abotu this company. I will have to check into them.

[kv968]

How did you calculate net worth, and what does "free cash flow" mean?

When their debt/total capital percentage is ~170%, their cash is $425(mil) and debt is $1315(mil) and cash flow from operations is -$338(mil), I would say they've got a negative net worth. And their "free cash flow" (cash from operations - capital expenditures) has pretty much always been negative.

IMO, this is a truly speculative stock in which you're pretty much betting the farm that the FCC permits the merger with XM. In all fairness, they did post a 45% higher 3Q return than they did a year ago but they're still operating in the red. It's a risky shot is all I'm saying, but that's what investing can be about at times.