3 Reasons to Sell Sirius XM

• Report this Comment On July 18, 2012, at 5:48 PM, Austin77478 wrote:

  Brenton! What are you up to about Sirius? Do you and your cronies have short positions on the equity? Your article is flat, to say the least. Where are Rocco, Cameron Kaine Saintvilus, Weinstein, and Regarded Solutions?

• Report this Comment On July 18, 2012, at 5:53 PM, DavidinNV wrote:

  It always disappoints me when comments like this, going out to a wide audience from supposedly knowledgeable people, are so superficial and naive.

  When it comes to Sirius, Mr. Flynn, I have three words for you: CONTENT, CONTENT, CONTENT. Sirius is so much more than a music-delivery vehicle that it amazes me when online analysts miss that important point.

  Here's what is going to happen: Liberty Media is about to gain control of Sirius, either via imminent decision of the FCC or by adding enough additional shares to become the controlling shareholder. John Malone said as recently as last week, at the Allen & Company conference in Sun Valley, that he will seriously consider spinning off Sirius in a Reverse Morris Trust.

  Whatever Malone decides to do, the various communications channels Liberty controls will enable it to leverage the performance of Sirius in a manner that Mel Karmazin cannot do, no matter how astute a manager he is.

• Report this Comment On July 18, 2012, at 5:57 PM, 67vair wrote:

  3 reasons to not read this article...Brenton Flynn, Brenton Flynn, Brenton Flynn.

• Report this Comment On July 18, 2012, at 6:49 PM, southernbeachguy wrote:

  Sirus reports today that they have added 600,000 new subscribers this year and you come out with a stupid "What -If" article. Do you have no pride in your creditability?

  PS: Sirus will have over $1 Billion in Cash at years end. Sirus is a cash cow.

  Do some research before you write an article in the future.

• Report this Comment On July 18, 2012, at 7:11 PM, chbecker99 wrote:

  Is 19 times forward earnings really that high for a $2 growth stock?

• Report this Comment On July 18, 2012, at 8:48 PM, rugbyrick wrote:

  Geese, doesn't the fool screen what their writers write? I have seen uninformed dialogue but this piece tops all!

  I don't even know where to begin! This company is doing everything right and if it boiled down to just music I would agree, music is just a small part of SIRI! Do your homework next time mr. Flynn!

• Report this Comment On July 18, 2012, at 8:49 PM, doubting wrote:

  The article is directed toward a clueless reader that is most likely lazy to do his own DD.

  Mr. Flynn is blatantly regurgitating the threats that could be considered in theory three years ago. I just wonder if he is aware that Sirius XM just scored over 622K new subscribers for Q2 - the best number of the four year old company in the face of this so called competition. At this pace Sirius XM has strong odds to add about 2M new subs in 2012, record number for the combined company.

  This dramatic number is important not only by itself but also serves as a strong indicator for 2013 where Sirius will definitely cross the two million new subscriber mark.

  The company jus raised its 2012 revenue from $3.3 to $3.4. This means that revenue growth in 2012 will be at least 13% rather than 10% as guided at the beginning of the year. What is critical is that Karmazin rarely touches revenue and, if sub numbers get to 2M, he can increase revenue, the most difficult target for Sirius, again to at least $3.45B that will be over 14% growth vs. 2011.

  All these factors bode well for the company and its future. They unequivocally lead to higher EBIDTA (that I expect to exceed $900M), fcf (in the range of $750M) and profit (about 11 or 12 cents p/s) in 2012. This year is literally paving the way for a very strong 2013, with revenue easily guided between $3.8B and $4B, EBIDTA between $1.1B and $1.3B and profit at $1B or higher. These are serious numbers that will start attracting serious attention to the company. Mark my word.

• Report this Comment On July 18, 2012, at 10:04 PM, duze54 wrote:

  You obviously know nothing about SXM. Content, sports and talk all set it apart from competitors! John Malone wouldn't be going after it if it wasn't a great investment.He coulda just converted and cashed over 3B from their stockholdings. or spunoff the shares to LM shareholders. No, they want it and they have inside access with 5 board seats. Right there tells all!! 5 insider seats!

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