This Week in Sirius XM Radio

Satellite radio is always on the move with Sirius XM.

Jul 19, 2014 at 12:30PM

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ:SIRI) moved higher on the week, climbing 1.8% to close at $3.44. The move was a lot better than the Nasdaq's 0.4% gain. 

There was more going on beyond the share-price gyrations, though. Sirius XM beefed up its buyback efforts. On the streaming front, Spotify announced that it has no intentions of following Pandora (NYSE:P) into becoming a public company anytime soon. 

Let's take a closer look.

Buy curious
Sirius XM has printed billions of shares over the years to facilitate a major acquisition and sidestep bankruptcy, but it has been working hard over the past two years to reverse part of those actions. This week it took another step to eat away at its gargantuan share count, with its board authoring the repurchase of another $2 billion worth of stock. This is the third time in the past 19 months that Sirius XM has authorized $2 billion in buybacks.

Sirius XM is good for the money. It expects to generate nearly $1.1 billion in free cash flow this year, and its improving fundamentals make it easier to line up financing on the cheap. 

It's not going to dive into the latest $2 billion buyback overnight. In fact, at the end of March it was only $2.3 billion into the $4 billion in repurchases that the board had authorized several months earlier. However, it has proven that these board moves aren't mere lip service, and that will be good news down the line when Sirius XM's expanding profitability improves on a per-share basis because the fully diluted share count is shrinking. 

Spotify doesn't want to you to be its master
Pandora has learned the hard way that it's not always easy being a public company. In fact, it recently stopped providing the monthly performance metrics that it used to dish out. Pandora will now stick to the required quarterly reports to offer insights about its operations. 

Spotify is in no hurry to follow Pandora into becoming a publicly traded company. 

"The primary thing for us is just growing the business," Spotify CEO Daniel Elk said at Fortune magazine's Brainstorm conference this week, zapping the chatter about the streaming music darling going public. "I personally don't understand the quarterly capitalism of Wall Street."

If Elk isn't fond of Mr. Market's game of making sure that companies keep producing every three months, it's unlikely that Spotify will be public anytime soon. Then again, with 40 million users worldwide and a quarter of them on board as paying customers it wouldn't be a surprise if a tech giant acquires Spotify before it ever goes through with its IPO.

Warren Buffett's worst auto-nightmare (Hint: It's not Elon Musk)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at one car giant called the technology "fantastic." The beauty for investors is that there is an easy way to ride this megatrend. Click here to access our exclusive report on this stock.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Pandora Media and owns shares of Pandora Media and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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