Satellite radio is awesome, but are they good stock picks?

HCI

HCI

Thread Starter
SatelliteGuys Pro
Jun 19, 2005
2,580
1
land of the ice and snow
http://fanellifinance.blogspot.com/2006/05/satellite-radio-is-awesome-but-are.html

I have been a subscriber to Sirius satellite radio since November 2004. I absolutely love it, especially for long car rides, and namely my commute to work three of the five days per week, which totals 150 miles per day. Do I have to have satellite radio? No. But I really want it. That is a quote you will here from approximately 10.5 million Americans, the amount of subscribers between Sirius and its rival, XM radio. The radio is relatively inexpensive at $13/mo. and approx. $50 - $200 for hardware, but anything is expensive compared to FREE (regular radio). Anyways, I love it, and won't get rid of it unless the companies ever go out of business.

Now, on the other hand, how about purchasing XM or Sirius stock? I thought it would have been a great idea last year, but held off because of each company's debt structure. HUGE expenses on both sides, due to primarily crazy spending on programming deals. One that pops into mind is Sirius paying Howard Stern $500 mil. over 5 years! Wow. Well, XM stock is down 33% this year, and Sirius is down 31%. So, not so sure on the stock purchase just yet, but who knows, maybe the technical analysis will trigger a purchase.
 
Shawn95GT

Shawn95GT

Tivo fanatic
Supporting Founder
Feb 9, 2005
2,278
1
Phoenix, AZ
I agree completely.

My only fear is that one or both will have a 'Voom-like' fate of being the premium provider, but can't make money.
 
H

HDTVFanAtic

SatelliteGuys Pro
May 23, 2005
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Neither are going to make money based on their current spending.
 
teamerickson

teamerickson

SatelliteGuys Pro
Jan 20, 2006
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El Dorado Hills, CA
Don't buy either (unless you like seeing your money go up and down constantly). How about oil companies? There profits are through the roof and the dividend is nice.
 
H

HDTVFanAtic

SatelliteGuys Pro
May 23, 2005
1,973
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They said the same in 2002 and 2003 for 2004.
 
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