Sirius XM Radio and GM Worth the Risk?
In a market like this, risk separates an investor who loses money and an investor who makes lots of money. Though, that same risk can completely bankrupt a risky investor, the smart ones can still make out big.
Here are two companies that are undeniably linked, and that are undeniably sinking… Sirius XM (SIRI) and General Motors (GM). These are both companies, that if they make it through this recession, will make plenty of people lots of money… if they take the risk and buy in now. Stocks like this are also extremely volatile… meaning if you pay attention you can cash in with a matter of days or weeks if good news is released. Sirius XM and General Motors are both trading very close to their respective 52 week lows. A jump of 30% or more in a day… is not uncommon.
In the stimulus package that President Obama just signed into law… had pork in it. Pork that will be good for both these companies. In the bill 500 million will be going to the government to buy “Fuel Efficient Vehicles” and, as we know this does not mean the government will be buying a prius or two. Most of this money will be going to buy “Fuel Efficient” hybrid SUV’s from the big three… In recent years most federal vehicles have been GM in make. A good example would be Barack Obama’s new Cadillac motorcade. What comes standard in Cadillacs? Sirius XM.
Sirius has a product, that cannot be questioned. Friends have gone without their SIRIUS radio for weeks and complained about it every station, they tried to find on terrestrial radio. Sirius XM just received a loan from liberty media, not under the best terms, that will help them last until at least 2010. If the economy is not back on track by 2010, then most likely, SIRI and GM will have already filed for bankruptcy protection.
The real question is… Do you feel like the economy has a chance or not?
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