Sirius XM Radio Not a Clunker
Sirius XM Satellite Radio NASDAQ:SIRI is up 15% over the past three days after news about how successful the cash for clunkers program has been at selling new cars. We can debate whether or not the program is good for America, but it sure is good for the Ford Motor Company and Sirius XM. Ford’s Stock has risen 4x as much as the DOW since the program has been announced, up an astounding 40%. Ford Motor Company NYSE:F has not had an 8.00 stock since May of last year.
It remains to be seen how much of a “pop” this program will give Sirius ( SIRI ) and Ford ( F ), If the government agrees to an additional two billion to fund the program the pop will not end for awhile. In fact, this program alone could lead both these companies to profitability. Ford Motor Company will receive a much more immediate boost, while Sirius XM Radio Inc. will receive a much slower but lasting boost… as subscribers who subscribe, stay subscribed.
Rich, poor, and the middle class have been taking advantage of this program. This can be seen by the kinds of cars Ford has been selling, though the focus has received the biggest pickup in sales, the fusion is not far behind. If an additional two billion is approved look for this quarter to be Sirius Xm’s first profitable quarter, and Fords first in a while.
NASDAQ:SIRI at the time of writing, .497
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NYSE:F at the time of writing, 8.38
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