Blog : Sirius Satellite Radio (SIRI)

by Peter Leeds on February 4th, 2013

siri sirius radio

I used to have significant concerns with satellite radio stocks.  Early on, while the concept of Sirius and XM were great, the actual systems themselves were clunky.  Their business model was a train wreck, and SIRI and XM were locked in a game of Russian Roulette.  Debt loads soared into the hundreds of millions, and they paid their show hosts way too much, much of that with shares.  Invariably, after the merger of XM and SIRI stocks (despite having previously agreed they would never do that), the stocks fell into penny stock territory.  My neck of the woods.

I like Sirius much more now, both in terms of their business model, their stock, and their product.  As a SIRI subscriber, I like watching CNBC in the morning, then listening in the car on my drive to work, then once I get to the office.  No down time!

Well, after being one of the biggest naysayers about this penny stock (in blogs, media interviews, special reports, and social media comments), I was glad to see how they had finally re-invented themselves.  

siri


This was one of those Hot List penny stocks which I did not want to pick.  I looked hard for a reason to not select them.  But at the end of the day, back in June, they were the best penny stock pick among many.  We selected and profiled SIRI to our penny stock subscribers when the shares were trading at $1.83.

While it's great that this penny stock is trading much higher now, the really impressive thing was the steady momentum of that rise.  Shares of SIRI are still enjoying their upward trend, which has been helped by stronger operational results, low customer attrition, and a battle for control of the company.

As an entrepreneur I was appalled for years by the manner in which SIRI operated.  When doing analysis on penny stocks, the fundamental and financial weakness demonstrated would be enough to not only scare me away, but to never give them another look.

In the case of SIRI, however, this penny stock was just too much of a value when it slid towards $1.83.  It still had a massive recurring billing customer base, and a monopoly on their product.  

Would I have picked them at their current price?  No way.  But a $1.83 penny stock?  Sure would... and did.  

Many of the Peter Leeds penny stocks team members thought it was pretty hilarious for me to finally come around to picking SIRI stock.  Actually, I thought that change of heart was even more hilarious than they did!

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