Sirius Up Again; Trend Should Continue. Ford and GM… What About Them?
Sirius XM Radio (NASDAQ : SIRI ) is up again today. The significantly undervalued stock has been climbing steadily this week. The only reason the stock has not completely taken off is that most investors are waiting for SIRI fourth quarter earnings. The fourth quarter will be the first real quarter where any synergies will be realized from the merger between the two satellite radio companies.
The stock has struggled since the merger to ever pick up ground, mainly due to the stock being highly devalued by so many additional shares being issued. SIRI is also being held down by the automotive companies who seem to be in a never ending lingo. Do not forget that Sirius is in every major automobile manufacturer.
There was good news this week as Ford ( F ) negotiated with the union to cut better health care deals. Ford is the one American auto company that may just ovoid bankruptcy without severe government help. Both General Motors ( GM )and Ford are up today, trying to convince investors they will make it.
GM only really has a few things going for it. The new Camaro is debuting soon, which should increase sales. The only problem is the V6 Camaro is turning to be the truly hot ticket… not the more expensive v8. The V6 Camaro has as much horsepower as the V8 1998 Camaro. No company likes a car that sells most of it’s units at the base price.
Chrysler?… Do not buy Chrysler… ever.
These are bargain stocks. Do all of these stocks deserve the bargain price?
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Comment by Mario on 25 February 2009:
A couple of months ago (before the crisis really started), I read a rumour on the internet that European car-builders where planning to use sat-radio, just as in the US. It didn’t say which builders, but the only logical ones would be Mercedes and the French (probably Renault).
I also remember reading that they where planning to work together with an existing sat-radio company (And the only one I’ve heard of is Sirious.), and probably combine this feature with the possibilities that the Galileo-project will bring. This seemed to be good news, so I bought some shares when the stock market went down.
Unfortunately the galileo-project has been delayed, thanks to the crisis, and this might have delayed the sat-radio ideas.
The worst part of this, is that I’ve never heard/read anything again concerning this matter. Even the site where this news was posted seems to have disappeared, because I can’t find it anymore.
Has anyone heard/read anything on this matter? I’m from the Netherlands and I don’t have access to all the financial news of the US-market, so I hope someone can help me with this enigma.
Comment by Alexander Nobles on 25 February 2009:
Mario…
I doubt this could be true… only because SIRIUS does not have satellites above Europe. Somebody can correct me if I am wrong…
They do not have the money to launch another satellite, and start up a whole new service.
Not saying that it is not an option down the road though…
We shall see!
Comment by Mario on 26 February 2009:
I don´t think it was the plan to use existing Sirious satellites or to launch a new one. It would be strange to have US-radio in Europe, so I think the idea was to use Sirious technology and know-how, combined with the use of European satellites and radio-stations.
I remember reading that they where planning to somehow combine the whole idea with the Galileo-project(gps and radio in one system?).
So let`s hope Galileo gets back on track to see if this rumour will reach the internet again (and hopefully the headlines as siri[o]us news)