World's Scariest Stocks: Sirius XM Radio

What else is stewing in our cauldron of evil? Prepare yourself before proceeding to the rest of our world's scariest stocks.

My worst Halloween fright-mare is that my broker automatically sells all my holdings in solid companies such as Berkshire Hathaway (NYSE: BRK-B  ) , Markel (NYSE: MKL  ) , and American Express (NYSE: AXP  ) , and puts all the proceeds in one of the worst businesses I can imagine. It's a company that competes every day with free alternatives, has destroyed billions of dollars in shareholder capital, and as far as I can see, will continue to do so for years to come -- if it manages to avoid bankruptcy.

My scary stock is Sirius XM Radio (Nasdaq: SIRI  ) , and as if to confirm my worst fears, the company recently announced that it will launch a Halloween Channel. Fortunately for those who don't want to be completely terrified, the channel will concentrate on scary sound effects, instead of recounting the company's ghoulish financial performance.

The fright-mare begins
So what's not to love about a company whose shares trade for only $0.60 a pop (as of Friday morning) and that, for some fluky speculators who bought back on Feb. 11, has been a 10-bagger? For starters, putting money into Sirius XM is simply gambling, not investing. And once you've bought the shares, you might stop to think about who's on the other side of the trade -- it could be someone with a lot more knowledge of the company's prospects. Like, say, CFO David J. Frear and four other executives, who have been selling furiously since they received a collective 10 million restricted shares in May. To me, that's plain freaky. If they thought the shares were undervalued, wouldn't they most likely hold?

So what's the value of the company? Capital IQ data tells me the market value is $0.58 for each of Sirius XM's 3.89 billion shares, for a market cap of $2.3 billion. But that's only half the story, since companies can source capital in many different ways. Don't forget that Sirius XM has some $3.3 billion in debt. Then there's Liberty Media Capital (Nasdaq: LCAPA  ) , holding 1 million preference shares that can be converted into a dilutive 40% of the equity. Add all that together, and the implied enterprise value is around $7 billion. The balance sheet shows $144 million in shareholder equity, but even that figure is possible only because of past cash injections from share issuance.

Startled awake
I like the product Sirius XM offers, but like many others, I am unwilling to pay for services that I can get free elsewhere. On short journeys in my car, I am almost always most interested in local traffic conditions, and for longer journeys, I can take my own choice of music with me. In my house, I get HD radio with my satellite TV subscription. The company's Sky Dock may make its product more portable, but I question the demand for it -- and besides, it would seem to be at odds with fixed receivers that are already installed in automobiles, which are the company's current biggest customer.

Foolish final word
Since Day One, both Sirius and XM were classic examples of a quality product and an absolutely lousy investment. The current share price sounds really cheap, but it doesn't matter whether you have 10,000 shares in Sirius XM or 100 shares in a company with a $60 share price: Either way, you still have $6,000 on the line. If you choose to put that money in Sirius XM, just remember that you're speculating. You might have better luck splashing the cash into a Las Vegas Halloween party and using your leftover funds to play poker or blackjack.

Phew! I just checked my portfolio, and Berkshire's still there. Nary a SIRI in sight. What a scary dream!

Warning: We've rounded up more scary stocks. Click if you dare.

Fool contributor Philip Durell owns shares of American Express, Berkshire Hathaway, and Markel. Berkshire Hathaway is a Motley Fool Stock Advisor recommendation. American Express, Berkshire Hathaway, and Markel are Motley Fool Inside Value recommendations. The Fool owns shares of Berkshire Hathaway and Markel, and its disclosure policy isn't scared of ghouls or ghosts.


Read/Post Comments (112) | Recommend This Article (44)

Comments from our Foolish Readers

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  • Report this Comment On October 30, 2009, at 11:47 AM, cycle63 wrote:

    Way to go fool! Earnings are to be released next Thursday so it is time to start getting all the negative comments out. I am sure you will really be bashing this stock next week.

    I can see it now....Sirius beats earnings estimates by .01 net subscribers down 100. Your story would be "Sirius takes huge loss on subscribers, delisting evident!"

    You guys are a joke.

  • Report this Comment On October 30, 2009, at 11:48 AM, ronnie456 wrote:

    Wow, you must be a genius. Couldn't think of anything original to write? So just keep repeating previous news... I could be a Motley Fool writer, you hiring?

  • Report this Comment On October 30, 2009, at 11:57 AM, elmagistral wrote:

    You make a mistake in stating that there is NO value in XM/Sirius competing with free offerings. Free offerings are a piece of crap. Radio's play 20 songs all day in a loop. I like classic Rock but can't stand 105.9 (106.x) anymore.

    And you imply it's so easy to bring your ipod, dock, etc. to your car. It is, but very uncomfortable. Docks, wires, syncs, etc.

    You may be right, probably are, that the level of debt makes SIRI a dead-man-walking. But THERE is value, and there is an operational profitable business.

  • Report this Comment On October 30, 2009, at 12:30 PM, js643dp wrote:

    Why do you all feel that it is neccessary to continue to LIE about the insider sells

  • Report this Comment On October 30, 2009, at 12:32 PM, brandonmatthews wrote:

    If ever there was an article written that deserved an SEC investigation, it's this one. I find the timing of this factually inaccurate piece that preceded several large block sales to be suspect.

    At .60 a pop, Sirius XM remains one of the NASDAQ'a highest valued stocks.

    The insider transactions you reference are bonus shares that were awarded following the completion of the largest media merger in recent history, awarded mind you after the companies CEO gave up his own bonus shares. I'll bet you hopped into your 1972 Pinto and ran to the bank to cash your Christmas bonus last year, yet have the audacity to insinuate insiders are selling. It's a 10b -1 plan and the shares as such are planned and required. The insiders have absolutely NO SAY in the timing of these sales.

    You speak of free content. On what other medium can you get the EXCLUSIVE content that satellite radio offers? All major sports including NFL, NBA, MLB, NASCAR, etc? How about Howard Stern, Oprah Winfrey, Rosie O'Donnel, ESPN Radio, CNBC, Bloomberg? This list goes on and on. The answer is no where. The commercial free music is a bonus.

    Your valuation of the company suggests that Liberty's preferred stake has not been factored in. That is an outright lie. It has. Do a little research.

    Aside from Liberty, which retained 60% of the equity for shareholders during its most trying times and avoided a shareholder wipeout, there has been no real dilution of under the current managements watch.

    To suggest potential bankruptcy in the face of Sirius XM having no liquidity issues and no debt concerns that could trigger such an event until the year 2013, is criminal in my opinion.

  • Report this Comment On October 30, 2009, at 12:34 PM, Fredlee009 wrote:

    Thank you for writing this article. Now allow me to show you why Im thankful.

    "and that, for some fluky speculators who bought back on Feb. 11, has been a 10-bagger"

    You just insulted me, for starters, thanks. But my 1000% gains on those shares when it hit .788, makes me not care. So now as I read on, Im already wondering how an author is allowed to write after he insults investors smart enough to ignore the main stream media, and buy a stock everyone told them not too.

    "Like, say, CFO David J. Frear and four other executives, who have been selling furiously since they received a collective 10 million restricted shares in May. To me, that's plain freaky. If they thought the shares were undervalued, wouldn't they most likely "

    Sorry Phil, I must contradict this outright lie, for you to scare an honest investor away on this terrible lie.

    Those shares were awarded as cash bonus's only for the year 2008. In lieu of cash, this company is saving money by giving shares away, PREVESTED OVER TIME, meaning, I know you wont know what that means Phil , so I will explain it to you. It means they are locked into these sales, and are doing them spread out to not hurt the SP all at once. Each of these insiders also holds MILLIONS OF SHARES AND OPTIONS NOT BEING SOLD.

  • Report this Comment On October 30, 2009, at 12:39 PM, Fredlee009 wrote:

    I will continue now, sorry, but their is a lot of bad information in your article, going to take me some time to get the truth out.

    "Capital IQ data tells me the market value is $0.58 for "--- Dont make me laugh. If anyone is looking at that to value a company like this, they dont belong being an investor. Simple evaluations of this company put the stock well over $1 based on assets, debt, equity value, and 8 billion in NOL.

    "I am unwilling to pay for services that I can get free elsewhere. "--- This is a 100 percent lie. There is no place you can receive the content, quality, and coverage SIriusXM provides for free, or even not for free. You cant get it anywhere else, period.

    "The company's Sky Dock may make its product more portable, but I question the demand for it -- "

    Number 56 on most downloaded app for the iphone/ipod in the AppleStore. Means everyone downloading the app has the product. Its only use is for the skydock. This rank is going up, and they barely started selling them. They will be sold in Apple Stores, Best Buys, and Radio Shacks. Your opinion on demand is irrelevant, due to your previous lies.

  • Report this Comment On October 30, 2009, at 12:40 PM, wanners wrote:

    This is a misleading article. I don't know if you really don't know that those insider sales were under a 10b5-1 sales plan, or if you just have an agenda here.

    Here is a link to the sec filings on CFO David J. Frear's shares. http://investor.sirius.com/secfiling.cfm?filingID=1225208-09...

    This is what it says: 1) The restricted stock units vest in twenty tranches on: 5/20/09; 6/4/09; 6/18/09; 7/8/09; 7/22/09; 8/5/09; 8/19/09; 9/3/09; 9/18/09; 10/2/09; 10/21/09; 11/4/09; 11/18/09; 12/3/09; 12/23/09; 1/6/10; 1/21/10; 2/5/10; 2/18/10; and 3/4/10. The Company has reserved the right to accelerate the vesting of these restricted stock units. Mr. Frear has adopted a 10b5-1 sales plan pursuant to which he intends to sell the common stock received by him on each of the vesting dates.

    You can also find the other executives filings at http://investor.sirius.com/sec.cfm

    May 21, 2009 is the date of the filing.

  • Report this Comment On October 30, 2009, at 12:43 PM, Fredlee009 wrote:

    Yes wanners, this guy is either so ignorant he should have his writing privelages removed, or something smells here. Maybe the SEC should investigate this site.

  • Report this Comment On October 30, 2009, at 12:51 PM, brandonmatthews wrote:

    Actually Fred, the skydock app as of last night was number 37 I believe, steadily climbing the ranks at Apple.

  • Report this Comment On October 30, 2009, at 12:52 PM, stocknblondes wrote:

    Brandon, I usually don't chime in on these fools, however looking at the timing of the articles, and the daily chart of siri , crox, is highly suspect

    http://finance.yahoo.com/echarts?s=SIRI#chart2:symbol=siri;r...

    you would think that traders don't have the split second timing to trade on these kind of articles, well unless they have advanced knowledge :-)

  • Report this Comment On October 30, 2009, at 12:55 PM, brandonmatthews wrote:

    stock and blondes...I captured the timing of this article and subsequent market reaction for posterity...feel free to use it in any SEC complaints...

    http://www.satwaves.com/forum/download/file.php?id=2757&...

  • Report this Comment On October 30, 2009, at 12:58 PM, rabbitiz wrote:

    Yeah, this article is why I subscribe to none of the Fool's report. Why they are continuing to write articles about Sirius XM should be a concern to every investor. I resent being told I am gambling. I resent the fools twisted reporting. Everytime there is good PR, the fool tries to throw cold water on it. If the fool was really interested they would know good things are coming for Sirius and share some of the good points and quit beating the negative drums of doom and gloom. The article is not even well written and the writer does not have all the facts correct.

    I have all news feeds from the fool blocked and don't know how this one got threw. I feel if you continue this you will lose a lot of creditibility.

    Perhaps we all deserve an explanation as to why the stream of negative articles?

    JMO

  • Report this Comment On October 30, 2009, at 1:01 PM, brandonmatthews wrote:

    The SEC will investigate these types of articles...here's one for reference...

    http://www.businessinsider.com/2008/9/sec-investigation-unit...

  • Report this Comment On October 30, 2009, at 1:02 PM, drevil6406 wrote:

    Phil,

    Hope you bought the correct Halloween costume! The south end of a northbound horse would be appropriate. Your narrow minded and extremely innacurate article chock full of misinformation and purposefully omitted facts has me laughing...for that I thank you...because laughter is indeed the best medicine of all. I only hope you can wake up and look yourself in the mirror knowing how you preyed on people and be alright with it. Whoever your editor is he or she is just as guilty for not checking out your article to confirm your work. Want a reason to be scared of NOT looking at SIRIUS Xm as an investor....here you go:

    http://www.kingofalltrades.com/2009/10/26/149.html#more-49

  • Report this Comment On October 30, 2009, at 1:03 PM, fresh1482000 wrote:

    I can only hope and pray that the SEC will look at the garbage and lies that you write and put you away for a long time...

  • Report this Comment On October 30, 2009, at 1:07 PM, Fredlee009 wrote:

    Thanks for that Brandon. See, its even higher than 56!!! And climbing!! NO demand my behind!!

  • Report this Comment On October 30, 2009, at 1:09 PM, stocknblondes wrote:

    I guess we all should of bought the best of breed Goldman Sachs a few weeks ago @ 194.00 hahah!

    heaven forbid us retailers are allowed to speculate with our own money anymore! I guess if we aren't buying google @ 600.00 GS @ 194.00 Appl @ 210.00 we are "foolish" right?

    on another note these guys in the media hide behind the constitution, freedom of press, unless we can prove " collusion " otherwise, we are sh&it out of luck..& they can continue to bash at will....

  • Report this Comment On October 30, 2009, at 1:13 PM, stocknblondes wrote:

    I guess we all should of bought the best of breed Goldman Sachs a few weeks ago @ 194.00 hahah!

    heaven forbid us retailers are allowed to speculate with our own money anymore! I guess if we aren't buying google @ 600.00 GS @ 194.00 Appl @ 210.00 we are "foolish" right?

    on another note these guys in the media hide behind the constitution, freedom of press, unless we can prove " collusion " otherwise, we are sh&it out of luck..& they can continue to bash at will....

  • Report this Comment On October 30, 2009, at 1:28 PM, Fredlee009 wrote:

    Nice comments stocknblondes. Good points. There are tons of good sights for the truth out there, I suggest investors find them before listening to this drivel.

  • Report this Comment On October 30, 2009, at 1:58 PM, daman23 wrote:

    "I like the product Sirius XM offers, but like many others, I am unwilling to pay for services that I can get free elsewhere"

    AND

    "I get HD radio with my satellite TV subscription"

    Is it just me or do those two statements contradict each other? He realizes that he can get free TV, right? I try not to criticize people too much, but seriously, if you're going to write an article bashing something, don't contradict yourself in that very article. If you don't like SIRI stock(or the product for that matter), just say you don't like it and leave it at that.

    Happy Halloween!

  • Report this Comment On October 30, 2009, at 2:23 PM, miteycasey wrote:

    "I like the product Sirius XM offers, but like many others, I am unwilling to pay for services that I can get free elsewhere"

    AND

    "I get HD radio with my satellite TV subscription"

    Is it just me or do those two statements contradict each other?

    Of course not.

    Where I live I can get ABC,NBC, CBS, FOX, and PBS.

    On the radio I can get dozens of stations.

  • Report this Comment On October 30, 2009, at 2:31 PM, miteycasey wrote:

    "I like the product Sirius XM offers, but like many others, I am unwilling to pay for services that I can get free elsewhere"

    AND

    "I get HD radio with my satellite TV subscription"

    Is it just me or do those two statements contradict each other?

    Of course not.

    Where I live I can get ABC,NBC, CBS, FOX, and PBS.

    On the radio I can get dozens of stations.

  • Report this Comment On October 30, 2009, at 2:46 PM, stocknblondes wrote:

    Brandon. Thanks for the screen shot, not that it will do any good, but I did a correlation of other articles over the last year, well as many as I could find, and compared them to time sales & charts etc. I'm going to also make a formal complaint to the SEC about this article in general, when I'm finished with my fact finding mission this weekend..We all know these guys work in collusion with various hedge funds & trading desks etc...Proving it is the problem. Maybe if enough people not only siri investors but other companies stocks targeted by these hack journalists keep the heat on the SEC they will no longer be able to hide behind the constitution..and will soon be prosecutable in a court of law. GL

  • Report this Comment On October 30, 2009, at 2:46 PM, GOFORAWILDRIDE wrote:

    Like all the previous comments about SIRIUS XM

    that have been posted by experts from the MF this is just another one that is spewing SH!T like all the previous comments on this fine company.

    China and India sales of XM will lead this company back to $5-6 a share. Then we who know better will be taking a huge 10-15 bagger in profits and then and only then will the MF writers push to have us buy in when we will have sold off.

    WHAT A JOKE THIS WRITE-UP IS AND ALL THE PREVIOUS WRITE-UPS ON THIS STOCK!

    Us smart FOOLS will continue to BASH all MF writers who spewl this drivel.

  • Report this Comment On October 30, 2009, at 2:47 PM, stocknblondes wrote:

    Brandon. Thanks for the screen shot, not that it will do any good, but I did a correlation of other articles over the last year, well as many as I could find, and compared them to time sales & charts etc. I'm going to also make a formal complaint to the SEC about this article in general, when I'm finished with my fact finding mission this weekend..We all know these guys work in collusion with various hedge funds & trading desks etc...Proving it is the problem. Maybe if enough people not only siri investors but other companies stocks targeted by these hack journalists keep the heat on the SEC they will no longer be able to hide behind the constitution..and will soon be prosecutable in a court of law. GL

  • Report this Comment On October 30, 2009, at 3:03 PM, Flebin wrote:

    BIrkshire Hathaway ownes Net Jets. They are loosing hundreds of millions a quarter. Whew! Good thing they are in your portfolio!!

  • Report this Comment On October 30, 2009, at 3:26 PM, miteycasey wrote:

    Price to Book (MRQ) 14.55

    Profit Margin (ttm): -233.04%

    Net Income Avl to Common (ttm): -5.52B

    Diluted EPS (ttm): -1.723

    Price to Tangible Book (MRQ) -0.51

    Price to Cash Flow (TTM) -0.40

    Total Debt to Equity (MRQ) 23.08

    Net Profit Margin (TTM) -2.33

    Return on Assets (TTM) -71.00

    Return on Assets - 5 Yr Avg -57.50

    Return on Investment (TTM) -168.00

    Return on Investment - 5 Yr Avg -120.00

    % Held by Insiders: 1.69%

    Now why would I want to invest in a company that can't make money when there are so many out there that can???

  • Report this Comment On October 30, 2009, at 3:28 PM, miteycasey wrote:

    Price to Book (MRQ) 14.55

    Profit Margin (ttm): -233.04%

    Net Income Avl to Common (ttm): -5.52B

    Diluted EPS (ttm): -1.723

    Price to Tangible Book (MRQ) -0.51

    Price to Cash Flow (TTM) -0.40

    Total Debt to Equity (MRQ) 23.08

    Net Profit Margin (TTM) -2.33

    Return on Assets (TTM) -71.00

    Return on Assets - 5 Yr Avg -57.50

    Return on Investment (TTM) -168.00

    Return on Investment - 5 Yr Avg -120.00

    % Held by Insiders: 1.69%

    Now why would I want to invest in a company that can't make money when there are so many out there that can???

  • Report this Comment On October 30, 2009, at 3:45 PM, stocknblondes wrote:

    Hey guys the only thing that bald bug eyed midget Cramer ever said worth it's salt was " nobody ever made any money selling on fear " turn on the business news networks, the fear mongers are running rampant today.. including the fools....yeee hawww

  • Report this Comment On October 30, 2009, at 4:02 PM, TheKiecker wrote:

    SIRI finishes in the green today... The DOW was down ooooh roughly 251.59 points..

    Eat it.

  • Report this Comment On October 30, 2009, at 4:03 PM, southernbeachguy wrote:

    With advice like this, I doubt that you could afford one share of Sirus, much less Berkshire. Your Statement, "Why would you buy something (like Sirus) when you can get on air for free"............ another stupid statement. Sirus has 100 channels to choose from without commercials (Talk Radio, Right & Left, 60s/70s/80s etc, Sports, Religious, Jazz, Blues, POP, Rap, Hispanic... you name it). I would venture to say that the 19 million subscribers don't agree with you. That sub number does not take in consideration, the potential future in South America, Europe and Asia. The future is very Rosy for Sirus.

  • Report this Comment On October 30, 2009, at 4:05 PM, miteycasey wrote:

    Why is the future for Siri rosy?

  • Report this Comment On October 30, 2009, at 4:07 PM, miteycasey wrote:

    China Yida Holding(CNDH) was in the green too so what's your point?

  • Report this Comment On October 30, 2009, at 4:08 PM, TheKiecker wrote:

    And all three of your picks blew bag.

    AXP out-crapping the Dow.

    Nightmare that, shorty.

  • Report this Comment On October 30, 2009, at 4:10 PM, TheKiecker wrote:

    miteycasey, Id draw you a picture but I dont have crayons..

    I missed the part of CNDH being a station on Sirius..

    Keep up the good work.

  • Report this Comment On October 30, 2009, at 4:11 PM, miteycasey wrote:

    what's the point other than an ad-hominem attack to divert the readers attention away from answering the question of

    why is Siri future looking good?

  • Report this Comment On October 30, 2009, at 4:13 PM, miteycasey wrote:

    Of course it isn't I was pointing out your faulty logic.

    I've said why Siri is a bad investment.

    Care to tell me why I'm wrong?

    Why is siri a good investment?

    Or are you just going to dodge the question by making ad-hominem attacks?

  • Report this Comment On October 30, 2009, at 4:39 PM, asm610 wrote:

    Two of The Motley board members:

    Putnam Coes is the chief operating officer of Paulson & Co., an investment management firm, and joined the Fool's board in 2008 with an eye toward expansion in the financial-services arena. Previously, Putnam was a managing director with Morgan Stanley, where he served as chief operating officer of the firm's hedge fund business.

    Steve Kerr is a Senior Advisor at Goldman Sachs and joined the Motley Fool board of directors in 2008. Previously the Chief Learning Officer at General Electric — where he reported to CEO Jack Welch and was responsible for GE's world-renowned leadership education center — Kerr provides guidance for the Fool's executive leadership training and in-house coaching initiatives.

    Need I say more!

  • Report this Comment On October 30, 2009, at 4:41 PM, miteycasey wrote:

    I'll give you three.

    Coca-cola(KO)

    Exxon Mobil(XOM)

    Wal-Mart(WMT)

    I could go on but you only asked for one....

    Care to answer my question now that I answered yours? Oh in case you forgot the question is.

    Why is Siri future looking good?

  • Report this Comment On October 30, 2009, at 4:41 PM, asm610 wrote:

    allow me to enlighten you miteycasey....incidentally, it's mighty:

    http://www.kingofalltrades.com/2009/10/26/149.html#more-49

  • Report this Comment On October 30, 2009, at 4:42 PM, miteycasey wrote:

    asm610 ,

    What's your point?

  • Report this Comment On October 30, 2009, at 4:44 PM, asm610 wrote:

    I believe it's the opposite of yours!

  • Report this Comment On October 30, 2009, at 4:45 PM, asm610 wrote:

    and your spelling is bad

  • Report this Comment On October 30, 2009, at 4:46 PM, miteycasey wrote:

    Basically that says "We can't be successful in the USA so we'll try overseas."

    OH and look at the bottom.

    Disclosure: Long SIRI

    DISCLAIMER: I do not own any siri.

    Someone might be able to persuade me too, but I have yet to see one bit of reasoning to suggest this company is a viable concern.

  • Report this Comment On October 30, 2009, at 4:48 PM, stocknblondes wrote:

    asm610, you don't have to say any more..if there were no financial gain in some form, then these guys wouldn't spend countless hours writing/bashing about a little 'ole' pennie stock. Whether they need hits on their website, or something more sinister as you have suggested above, nobody does this sort of thing on a daily basis unless their is some form of financial motive..GL peace.

  • Report this Comment On October 30, 2009, at 4:48 PM, miteycasey wrote:

    another ad-hominem attack.

    Any solid evidence of why siri is a buy?

    I'm still waiting on someone to say.

    You should buy siri because.....

  • Report this Comment On October 30, 2009, at 4:49 PM, miteycasey wrote:

    They are bashing it because it's a bad investment and people don't seem to listen so they say it louder.

    I'm still waiting on a solid reason as to why this stock is a buy and the reasoning behind it.

  • Report this Comment On October 30, 2009, at 4:52 PM, asm610 wrote:

    Would you prefer I lie about my holdings...?

    Additionally....I would rather side with John Malone and Greg Maffei than anyone at The Motley Foll or anyone who DOESN"T KNOW JACK about this company as your comments show. They can't MAKE it in America......is that so. I guess over 18 million subscribers and about to add more your is definition of not making it. Let me ask you this... Why are you so concerned posting about a company you have ZERO interest in, and why are you so intent on bashing it?

  • Report this Comment On October 30, 2009, at 4:53 PM, stocknblondes wrote:

    Hey Casey

    it's all relative, any more brain busters? lol

    http://finance.yahoo.com/echarts?s=SIRI#chart3:symbol=siri;r...

    and don't pull any long term charts on me either, well unless you're 80 an year old man, and bought those 3 a long time ago, didn't your momma or these fools tell you the day of buying and holding are over? lol

  • Report this Comment On October 30, 2009, at 4:56 PM, miteycasey wrote:

    How about just two years. I mean I have underwear old than that.

    http://finance.yahoo.com/echarts?s=SIRI#chart2:symbol=siri;r...

  • Report this Comment On October 30, 2009, at 5:00 PM, miteycasey wrote:

    Why do siri supporters leave that 'making money' part out of the equation when they spout subscriber numbers?

    18 million subscribes and they are losing money.

    That's my definition of not making it.

    I mean Bear Stearns had that many 'subscribers' as well.

  • Report this Comment On October 30, 2009, at 5:02 PM, miteycasey wrote:
  • Report this Comment On October 30, 2009, at 5:02 PM, SIRIDoom wrote:

    Keep telling the truth about SIRI!!!!!! MF Rocks!!!!!!

    The only people making money on SIRI are the paid bashing advertisers. Mel pays an army....

    SIRI is about to do a rev-split 10 - 50 for 1 share.

    SIRI has been killing stock holder value with every passing year.

  • Report this Comment On October 30, 2009, at 5:05 PM, asm610 wrote:

    casey you want reasons...I'll give you a few

    1.More revenue streams with less SAC

    2.New programs in place with Pre owned and used Car programs

    3.The Apple Iphone/Ipod touch application for streaming SIRIUS XM internet

    4.The Apple Iphone/Ipod touch application for use with the SKYDOCK which turns your Apple device into a full fledged satellite radio in your car

    5. Reduced interest on outstanding debt and debt payment dates pushed out to at least 2013

    6. Liberty Media is calling SIRIUS XM the anchor of their LCAPA stock......not a position they would hand out lightly

    7. Liberty owning 40% of SIRIUS XM...they NEED SIRIUS XM to perform...or it affects their company's shareholders as well!

    8. Exclusive events and top shelf talent not available anywhere else...but available nationwide for your listening pleasure. Go look at the improvements in their financials as well since the merger last year.

    http://investor.sirius.com/

  • Report this Comment On October 30, 2009, at 5:05 PM, TheKiecker wrote:

    3 year old underwear?

    You are a regular Rockerfellah.. Please give us some of your financial insight. You are obviously SLAYING the Market.

  • Report this Comment On October 30, 2009, at 5:06 PM, asm610 wrote:

    SIRIDOOM.......lol

    the biggest CLOWN of all. How many WRONG calls are documented on you now....about 1000!

  • Report this Comment On October 30, 2009, at 5:16 PM, miteycasey wrote:

    SIRI has been killing stock holder value with every passing year.

    Truer words were never spoken.

    http://finance.yahoo.com/echarts?s=SIRI#chart3:symbol=siri;r...

  • Report this Comment On October 30, 2009, at 5:25 PM, miteycasey wrote:

    Thank you asm610.

    But once they are on the iphone they will have to compete with internet radio that you can already get on the iphone.

    How will they compete with these stations, Pandora for example?

    What will the subscription costs be for just the iphone? Or are they going to charge you $14 a month? If so how will this cut into there receiver sales/licensing?

    Exclusive events and top shelf talent not available anywhere else. EXCEPT THE INTERNET.

    for example:

    http://www.google.com/hostednews/ap/article/ALeqM5j9WONbvQaj...

    I mean U2 is top shelf aren't they?

  • Report this Comment On October 30, 2009, at 5:26 PM, SIRIDoom wrote:

    Philip "Davy Jones' Locker" Durell

    You guys have told the story the way it is, the truth about SIRI.

    SIRI CEO Mel has been bleeding stock holders. He anounced a plan to save SIRI in the stock holder meeting dec 08 that was nothing but a scam.

    Who issues more stock to pay debt and plans a rev-split? Only crooks do. Mel did this in the open. HE IS A CROOK!!!!!

  • Report this Comment On October 30, 2009, at 5:29 PM, SIRIDoom wrote:

    WHAT IS GOING ON WITH SIRI?

    Do you really want to know?

    Mel is screwing SIRI Stock Holders for his continued but ever changing evil plans. Mel has no respect for The “Unwashed Common Stock Holder”.

    December 08 before the stock holder meeting, I informed everyone on Seeking Alpha that “Two Private Investors have made offer to Mel. The offers would have eliminated the need for a Rev-Split. If Mel had taken one of the two offers we would all be looking good and no Rev-Split would be looming. Mel refused the offers before the December 08 Stock holder Meeting. Mel NEVER INFORMED STOCK HOLDERS OF THE OFFERS. The offers at the time were much better than what happened in the SIRI takeover war.

    Now, Mel wants his Rev Split and he will soon get it. Originally Mel desired to take SIRI private and this may still be in the works. However, now we have a 40 percent partner. One way to reduce that 40 percent partner is to Rev-Split 1 for 50 and then issue more stock during the next “Mel created emergency”. The key idea here is that Mel has a plan and his plans always screw stock holders.

    More history- Mel invented a lawsuit and paid a third party to sue SIRI. Yes, you read that correctly. It is well known that Mel attempted to get total protection from class actions of stock holders for his antics during the merger. Fortunately, Michal Hartlib discovered the corruption and prevented Mel from obtaining the protection. The Judge in that case was outraged.

    SIRI Stock Holders can not get a fair vote. Between our 40 percent partner and the reserve stock held by the company, public stock holders are out-numbered. Mel is a wild man and he is running fully unchecked.

    Wall Street and Main Media have been burned and given up on SIRI. They know but can not write about what Mel did to stock holders of three companies that he devastated, took private, and merged to build Viacom. Three years beating back lawsuits and Mel became a media mogul on the backs of poor beaten investors. This is all well known information that Mel is proud to speak about during parties for the rich and famous.

    Mel will continue to make his little innocent looking mistakes. He will have you believing the world is beating him up. But what is truly going on is Mel and Goldman Sacks are making millions trading SIRI on the back end. This billion dollar monster is Mel’s “Cash Cow” and the “Unclean Stock Holder” is getting milked.

    Most or the main stream investors (other than insiders) are avoiding SIRI like a disease. Most will NOT touch SIRI until the Rev-Split is over or off the table. So, SIRI will not go over 1.00 and will need the Rev Split to keep its NasD listing. Mel wants this split. Do not expect Mel to do anything correctly until after he gets his Rev-Split.

    I have posted this information so that new comers understand the deep crap they are looking at in SIRI. I will not be responding. I got tired of defending the truth of SIRI long past. Some Bloggers and Seeking Alpha get a pay check for beating up people for posting the truth about SIRI here…

  • Report this Comment On October 30, 2009, at 5:43 PM, JamesRobertDobbs wrote:

    Motley Fool, your motives are so obvious and transparent, you really should be ashamed.

    SIRI is about to announce Q3 numbers which are likely going to be good, so you have to bash SIRI.

    SIRI is poised to sell massive numbers of subscriptions by putting Sirius radio in pre-owned vehicles, so you have to bash SIRI.

    And when you can't bash intelligently, you bash irrationally ... what's this about "most people" not wanting to pay for something that's free? Are you forgetting the millions of subscribers that HAVE already chosen to pay for satellite radio? And dear God, man ... are you actually comparing satellite radio to FM radio, or your MP3 collection? Do you have plans to give up your cable TV and go back to free TV and your VHS collection?!?

    MF, your agenda is showing.

  • Report this Comment On October 30, 2009, at 5:53 PM, miteycasey wrote:

    The difference is there are 100s of radio stations for free. Free TV has 5-10 channels.

    That's not a comparison at all.

    Care to try again?

    As for the millions that already have chosen pay radio Siri still isn't making a profit and the majority that pay started off getting it for free and continued the service.

    How is siri going to get the general public to give there service a try? Are they going to give away receivers that they are currently charging $40?

  • Report this Comment On October 30, 2009, at 5:54 PM, SIRIDoom wrote:

    Seeking Alpha is a pro SIRI site that engages in pure propaganda.

    They censor SIRI negative comments.

    The have even started editing comments.

    Your comments are intellectual property. What right does Seeking Alpha have to edit comments? NONE!

    Free speech is dead on propaganda sites that profit from twisting stock information. Seeking Alpha is a SIRI advertiser and home for SIRI employees.

    When you complain in email Seeking Alpha sends you a contact from some Lawyer in Israel. We are now building a complaint to send to the US and the California Attorney Generals. We suggest others do the same.

    I do not understand why MF allows advertising of Seeking Alpha. It should be stopped. It is against the MF policy.

  • Report this Comment On October 30, 2009, at 5:55 PM, JamesRobertDobbs wrote:

    re miteycasey

    "But once they are on the iphone they will have to compete with internet radio that you can already get on the iphone.

    How will they compete with these stations, Pandora for example?"

    Dude. There are many people out there with an iPod Touch, or with iPhones without expensive data plans, who can now get excellent streaming radio. Can you get Pandora, while commuting, for the cost of a Sirius subscription? On your iPod Touch? Or on your iPhone without a data plan?

  • Report this Comment On October 30, 2009, at 5:57 PM, JamesRobertDobbs wrote:

    re miteycasey

    "The difference is there are 100s of radio stations for free. Free TV has 5-10 channels.

    That's not a comparison at all.

    Care to try again?"

    Sure. There are members of the public that are happy with the lousy audio quality, the commercials, the droning DJs and the repetitive song lists of those free radio stations that you mention. And then there are those who want something better, and they're willing to pay for it. Do you understand now?

  • Report this Comment On October 30, 2009, at 6:11 PM, nofoolingforme wrote:

    During the last year and a half, I subscribed to three of the Motley Fool monthly Reports. They touted several of the same stocks in each of the newsletters. Month afer month, I found very little new content in them.

    Every one of their recommendations that I purchased bombed. They dropped faster and farther than the market average. After this happened, they did not provide any explanations or updates on these stocks. I didn't know whether to hold, sell or buy more.

    Yes, it was a bad year all around but, ironically, the stocks that I bought based on my own research and instinct did significantly better that their picks. I have no business background or education but I did better than their analysts.

    One of my subscriptions was their Million Dollar Portfolio. They suckered subscribers like me into helping them amass a million dollars in investment money. They were going to turn it into a billion dollars. Instead, they squandered it into a couple of hundred thousand.

    While the markets were going down, the MF geniuses kept saying: buy, buy, buy as the markets continued to descend to their lowest levels.

    Why would anyone trust their opinions? Either they are true fools or they are using the gullibility of their loyal subscribers to make themselves rich. I think that it is a bit of both.

    This is the first time I have bothered to provide a comment in this forum. As for Siri-doom, the rest of us need to realize that he/she is a sick person. How else can you describe someone who seems to take sadistic pleasure in constantly saying negative things about a company in order to discourage and offend people who have invested in it? There is a mental illness behind this behaviour. You would think that he would have something better to do with his time other than relish in the fact that this stock has been having a difficult time and many people have money and hopes tied up in it.

    One of these days, Siri-doom is going to go on a rampage and hurt people. He needs to seek the help of a psychiatrist before it is too late. If any of his family members is aware of his psychosis, I hope that they will do something to help the poor guy get well.

    So, don't be angry with Siri-doom, pity him/her and understand that he/she is mentally unstable and not responsible for his comments or actions.

    As for Sirius XM radio, it is an awesome product. It has so much to offer to satisfy everyone's needs and tastes. You can't find this kind of variety on cable tv for which couch potatoes pay many times more money with commercial interruptions. Most people who get a taste of satellite radio will agree that is it worthwhile. With the home unit you can readily record off the radio and take your own music with you.

    Long live Sirius XM!

  • Report this Comment On October 30, 2009, at 6:20 PM, miteycasey wrote:

    iPhones without expensive data plans,

    ummmmm....you have to buy a data plan with the iphone. But nice try.

  • Report this Comment On October 30, 2009, at 6:28 PM, miteycasey wrote:

    And then there are those who want something better, and they're willing to pay for it. Do you understand now?

    Of course I do, right now there are 18 million of you, but is there enough of you to make a company profitable? To this point it's a resounding NO and that's what Siri fanboys don't get.

    Just because something is great, it's the best in it's class, and priced well doesn't mean it will succeed or is worth your investment dollars.

    They need enough subscribers to cover their costs, pay their bills, and pay for their content.

    That's not happening, and I doubt it will.

    I think that sums up my argument in two sentences.

  • Report this Comment On October 30, 2009, at 7:00 PM, miteycasey wrote:

    This is a discussion forum about investing.

    I've shown in several of my posts why siri is a bad investment, yet no one can show me why siri is a good investment.

  • Report this Comment On October 30, 2009, at 7:16 PM, SIRIDoom wrote:

    Well, at this time SIRI is a very bad investment. I agree with you. Debt, rev-split, and managment that cares nothing about stock holders are all great reasons to avoid SIRI.

    SIRI is a day trade for gamblers. When the rev-split is over things may get better...

    Or, Mel could issue more more more stocks to pay debt and plan the next rev-split. It could be an endless cycle paying debt with stock holder value...

    Very bad managment CEO Mel KarmaCrook. But, the employees and advertisers love him.

  • Report this Comment On October 30, 2009, at 7:20 PM, SIRIDoom wrote:

    Dont forget what Cox cable did to stock holders. After years of paying debt with shares and two rev-splits COX started making money.

    Just when COX started making money, they crashed the stock, purchased up the shares, and took it private.

    The future of SIRI is a plan to milk us...

  • Report this Comment On October 30, 2009, at 7:25 PM, sammorrar wrote:

    a few things.

    1. Just because you live in a box and only want to listen to the news, does not mean anyone else would not. I am not even a shareholder, but SIRIXM does have way better selection than all the free stuff we can get.

    2. The united States is in debt over 2 Trillion dollars. Because it is in such debt are you going to give up your US PASSPORT because its in too much debt? Because thats what you are saying about SIRI, it has too much debt to recover, and because of that stop being a shareholder. Dont give it any hope. Try to avoid this stock.

    Managment is horrible for SIRIXM i can say that, but as the NEW generation comes and YOUR GENERATION passes people like technology. Cars are now being built in with SIRIXM radio, wats another 15$ bill going to do to people. We pay 100s for cell phones, 100s for cable, 100s for insurance, 100s for TIVOs and DVRS, yes Sat Radio is not a nececity, but what really is?

  • Report this Comment On October 30, 2009, at 7:39 PM, DiscoFinance wrote:

    I just heard the movie made about Sirius XM (its stock, the bankruptcy, naked short selling) got picked up for distribution. "Stock Shock" still sells at the movie website or at Amazon on DVD.

  • Report this Comment On October 30, 2009, at 9:34 PM, Steiny27 wrote:

    mitey,

    i typically don't respond to bashers because its a waste of time but i had to respond to this...

    "Why do siri supporters leave that 'making money' part out of the equation when they spout subscriber numbers?

    18 million subscribes and they are losing money.

    That's my definition of not making it."

    i'm guessing you consider "making money" as the bottom line GAAP income or loss, correct? well, to me "making money" is what it is - has the company increased its cash position period over period?

    let's look at the last two quarters on SXM's balance sheet (remember #'s are in 000s)

    increase in cash 12/31/08 to 6/30/09 .. $161,242

    looks like SXM is "making money" to me. its almost amazing that a company doing as poorly as you stated increased its cash position during two of the worst Qs in recent history.

    now, let's look at the YTD net loss analyze this a little...

    YTD net loss as 6/30/09 is approx. $(394,000)

    doesn't look good on the surface does it? let's dig a little deeper...

    YTD operating profit is approx. $78,000

    YTD interest expense is approx. $(161,500)

    YTD loss on debt refinancing, etc is apporx $(125,700)

    YTD loss on preferred stock conversion is approx $(186,000)

    the net loss is a GAAP figure and can be somewhat deception as it doesn't truly represent the company "losing money". just because a loss is incurred for GAAP purposes doesn't mean it is a cash-based loss. some of the above losses are "write-offs" from past transactions or other non-cash losses that only affect GAAP income/loss and will not re-occur going forward.

    also wanted to point out to you that SXM has operated at a profit for the worst 6 months in recent history. doesn't sound like a struggling company to me.

    lastly, based on SXM's recent 10Qs, its assets have increased and liabilities have been decreasing (i'm not going to spell out each asset/liab - you can look up the #s). yes, there is a good amount of debt remaining on the books but this debt has been refinanced/pushed out to approx. 2013 and beyond thus diminishing the threat of bankruptcy significantly in the upcoming years.

    i'll admit SXM isn't a perfect co. at this point but what can you expect out of a newly merged co.? its not all doom and gloom as you, et al make it out to be. if you invested money in the co. back in Feb/Mar, you'd be up over 1000% as of today. sounds horrible to me.

  • Report this Comment On October 30, 2009, at 10:59 PM, Isaac86 wrote:

    Posted by "MiteyCasey"

    [quote] iPhones without expensive data plans,

    ummmmm....you have to buy a data plan with the iphone. But nice try. [/quote]

    Nice try but apparent;y you seem to be a little behind on what goes on involving apple, its phones, and hackers.

    Currently You can't buy an iphone "from Apple or ATT" without a data plan and ATT service. However in the iphones early release, Apple didn't require service to be activated upon purchase. This allowed many people to purchase iPhones with the goal of jail-breaking the phone for use with other network providers that also wouldn't require a data plan. Granted you lose some of the phones funtionality in the process. Jail-breaking was a process for hacking the iphone to allow the use of other network provider SimCards.

    The phones after being jail-broken, were then resold over the internet through website like ebay adn still continue to be sold - at a premium obviously.

  • Report this Comment On October 30, 2009, at 11:02 PM, Isaac86 wrote:

    And yes I apologize for the typos, I didn't proofread it until after the posting... Ah well, too late now.

  • Report this Comment On October 30, 2009, at 11:14 PM, Isaac86 wrote:

    Correction - People unlock the iphone using a different method but that was the jist of it. Jailbreaking the phone allows the user to have full file system Read/Write permissions to customize their phone.

    Sorry for the incorrect information

  • Report this Comment On October 31, 2009, at 12:38 AM, leadbelly3141 wrote:

    Question: How many radio companies have satellites in orbit? The answer is ONE. Sirius XM. Do you think that Sirius has a LONG RANGE plan? Satellite communications? Satellite TV? Let's talk about crazy. How many over priced plastic bottles of tap water are these financial "Editors" investing in every day? In 1999....10 years ago people....., according to a NRDC study, U.S. consumers paid between 240 and 10,000 times more per gallon for bottled water than for tap water.

  • Report this Comment On October 31, 2009, at 3:21 AM, SIRIDoom wrote:

    Yes, SIRI has a plan. But you will not like it.

    Read my comments. The plan was anounced by CEO Mel in two stock holder meetings.

    Mel's plan - Pay debt with new issue stock shares and then rev-split.

    But, the economy slowed his plan like a punishment sent from God for scamming investors.

    Wana here his plan for funding the Merger?

    Quick and dirty, deal with Goldman Sachs to provide a lean for shares that Goldman Sachs used to borrow real shares and short SIRI to hell...

    Mel is making millions on back end deals with Goldman Sachs. Just look at the 3 investigations done by the SEC and DOJ. It was all within the law. The law of crooked CEO's...

    Get ready for the rev-split... It was the plan...

  • Report this Comment On October 31, 2009, at 3:43 AM, SIRIDoom wrote:

    More Info-

    Mel's agreement with stock holders was not to rev-split unless it is for NASDAQ delisting for trading under 1.00 a share.

    The economy declined and the NASDAQ suspended the delisting rule. This put Mel one full year behind schedule for the split. The delay caused the need for Malone to bail SIRI out.

    Goldman Sachs has used shorting with its lean shares to control the daily trading keeping SIRI under the buck. Now, you need to understand this is free money for Goldman Sachs. They are barrowing on a lean for shares and this is all free for trading houses.

    It was always the plan.

    But, the paid SIRI advertisers want you to think the FCC caused all the problems. LOL...

  • Report this Comment On October 31, 2009, at 3:21 PM, Fredlee009 wrote:

    MC,and Siri-Doom, your posts arent worthy of a response, and you are obviously paid bashers. So I will ignore you. No intelligent reader is going to believe your lies, and companies do not pay people to go on message boards, shorts do. Evil shorters, who like stealing harm working Americans Money.

    You two should be ashamed of yourselves.

  • Report this Comment On October 31, 2009, at 3:21 PM, Fredlee009 wrote:

    Hard, not harm. Sorry about that.

  • Report this Comment On October 31, 2009, at 3:45 PM, tigertor wrote:

    WOW,

    All this chatter about two companies that had to get the government's permission to merge rather than go under.

    At that time the siri spinners were talking about developing T.V. reception in moving vehicles. Then one spin after another.

    I held siri when it was selling for dollars rather than pennies. I got out and made a good profit. Getting out is the key.

    Simply put there is too much free media in this economy to pay the monthly or annual fees .

    I would agree that there are some professional spinners here. What other reason would generate this much noise about a losing company.

  • Report this Comment On October 31, 2009, at 6:06 PM, stefanic47 wrote:

    I've spent hours on the phone, 25 emails, and finally was able to cancel XM radio. I was threatened with delinguency reports to credit service, could not convine anyone via email (being on hold with phone for > 30 mins is my limit) that the service came free with a new Chevy and I didn't want it. As I'm sure more and more people have noticed, XM has more ads than regular radio, programming is horrible and I can download free programming and audio books to my ipod and plug into car speakers. Why would I want a news/talk/story station that I can listen to partially? Poor customer service, backwards programming, and too many commericals for unheard of subscription prices will doom XM/Sirus. Until they add a pause function, where listeners can continue a program when car is turned off, XM will fail. I feel they should pay me to listen or at least offer it free. There is an assumption users spend 23 out of 24 hours in thier car. It may be great for long haul truckers, how about us short drive listening majority?

  • Report this Comment On October 31, 2009, at 6:16 PM, stefanic47 wrote:

    My other comment disappeared. Until XM/Siri has a pause function on the few stations worth listening to, subscriptions will drop faster then the satellite. Radio free from advertisements is false, more people spend less than 60 minutes in a car a day, and most have jobs where listening to radio all day isn't condusive to staying employed. It took me 3 months, but I was finally able to cancel the free subscription that came with a new car and was recieving deliquency notices for $184 almost daily.

  • Report this Comment On November 01, 2009, at 12:56 AM, eaenglish10 wrote:

    MF seems to have a SIRI bashing agenda. They have been writing these articles for months now. Personally I wouldn't touch the stock now. I also don't doubt that they can push it to $1 to keep it on NASDAQ.

    And Berkshire is somewhat of a joke dude.

  • Report this Comment On November 01, 2009, at 11:14 AM, strovej1 wrote:

    "Question: How many radio companies have satellites in orbit? The answer is ONE. Sirius XM."

    ? That's not true. There's also Worldspace, another destroyer of value. However, I will concede that they have non-overlapping footprints.

    The main point is not to view Sirius XM's sole satellite status as a positive, but for what it is: an extremely capital intensive investment in a business with margins that will diminish to nothing in the medium/long term. However, the debt will not go away.

    Do all of the SiriusXM fanatics still own their paging company stocks? Same mistake.

  • Report this Comment On November 01, 2009, at 12:21 PM, wolfwuf wrote:

    You're right...as a safe harbor Siri isn't...at the moment...a solid investment. However, there are signs that more than auto people are interested in paying for sirius. There are things you can't get for free on Sirius...and I'm more than happy to pay the subscription fee.

    You are being shortsighted and narrow minded thinking the world is made up of the 20-35 male population who drives all day and wants to take the time to down load their favorite music.

    Once Sirius starts tapping into that market, and from what I have seen lately on tv shows, the skydoc is going to do that.

    Can I watch you eat your words?

  • Report this Comment On November 01, 2009, at 7:33 PM, BigVincent wrote:

    Phillip Durell over emphasized this stock to make it look worse off than it is. Sure it has problems. It is definitely on the road to recovery and I don't think it is a gambling stock.

    It was a gambling stock for the week it bottomed out at .0555 cents. It was extremely risky, but the company made it in the clear.

    Liberty media (LCAPA) has invested alot into siri so that it doesn't fail. It has a 40% stake that I am pretty sure siri doesn't want it capitalizing on anytime soon.

    4th q of this year the company is going to show profitability.

    The company is worth a net 7.7billion and growing, it owes 3.8 billion in debt by 2015 that is like a toilet paper of a write off from year to year. This company does thrive off of the shareholders, but anyone that understands the equity of this company will realize that its returns will be 3 times greater than they are now by 2013 when a large loan payment is due.

  • Report this Comment On November 02, 2009, at 2:36 PM, XMRIP wrote:

    Your article did not address the stupidity of Sirius upper management by chasing away former XM subscribers after the merger. XM subscribers primarily paid for radio to get more music variety and to escape the sameness of the FM conglomerates. These were passionate subscribers that provided strong buzz for the service and often acted as unpaid salesmen.

    After the Sirius merger (which XM subscribers deem a takeover), Sirius fired practically all of the creative XM DJs and turned the programming of the XM music channels into, if not actual FM clones, stations run with the FM philosophy of small playlists, no innovation and numbing sameness. Complaints by XM subscribers were met with either indifference or outright hostility. As a result, many of the earliest XM subscribers have cancelled subscriptions in disgust--and about 2 to 3 million of them joined XM in the early part of the decade when there was nothing in it but music with some news and sport station fees. I was an XM subscriber from May 2002, gladly paying for radio as an alternative to FM. Angered by now paying FOR FM, I cancelled when my subscription ran out last month.

    Sirius should have melded the best of both services--Sirius' talk and sports programs with XM's music programs. Instead, Sirius probably lost more subscribers than they've gained because of the mass exodus of former XMers to internet radio, HD radio and ipods. I guarantee you that none of us wanted to do it, but Sirius' stupidity forced us into it.

  • Report this Comment On November 02, 2009, at 2:37 PM, XMRIP wrote:

    Meant to say "news and sports station feeds".

  • Report this Comment On November 02, 2009, at 6:21 PM, miteycasey wrote:

    MC,and Siri-Doom, your posts arent worthy of a response, and you are obviously paid bashers.

    Actually I'm not.

    I was just wanting to see what all the siri brew ha-ha was about, why each TMF article's author that mentioned siri was bashed and who was bashing them.

    Now I understand.

  • Report this Comment On November 02, 2009, at 11:45 PM, BigVincent wrote:

    XMRIP,

    you fail to understand that much of the subscriber acquisitions were at a loss for xm. Sirius before the merger was acquiring subscribers at a faster rate than xm subscribers. Research also showed that much of the xm content was bland and boring.

    Although xms content was a bit more comprehensive, there were songs that some people didn't even care to hear. this is all based on research from billboard, arbitron, and so on as far as what people want to hear.

    It was a simple reason why xm dj's and content was dropped, contracts were to much in cost.XM had also dug itself into a money pit that almost caused the bankruptcy of the newly merged sirius/xm. Agreed that some of the content was a bit more extensive from channel to channel. The average listener however only listens to radio for about 1 hour during commutes.

    Wine and moan all you want. Enjoy that intermittent FM. Customers that know what they pay for, love what they pay for, and then there is no doubt to go back to FM.

    Satellite radio regardless is months ahead on new music, the music industry hands over more new content to satellite radio VS FM radio bacause royalty fee's are paid, and everyone is happy.

  • Report this Comment On November 03, 2009, at 3:01 PM, jdzarlino wrote:

    I used your 6000 (3300) dollar example and bought one share of BRK.B today and 5500 hundred shares of SIRI. (.60) My cost 6600 dollars plus commish. 8.95 per trade. Today's date is 11-3-09.

    You can buy 15 dollar options right now for June 2010 contracts. I suggest you get some.

    If you want to have ice in your drink you have to freeze the ice yourself or go to the store and buy it.

    You can't freeze the content SIRI provides or get it for free. Your artical is somewhat misleading with respect to free satilite.

    As far as the guys that spent all the money in the past, it's gone, what they do next will be watched liked a hawk swooping down on it's prey.

    John Zarlino

    Your Car Guy

    jdzarlinoyourcarguy@yahoo.com

  • Report this Comment On November 04, 2009, at 11:31 AM, TMFBent wrote:

    Always great to see the the SIRI fan base. Nothing's changed since I began writing about it years ago, except the stock is in the tank, the business is worse, and the true believers more passionate than ever.

  • Report this Comment On November 05, 2009, at 10:32 AM, mikebz5 wrote:

    HAHAHAHAHHAAAHAAA!!!

  • Report this Comment On November 05, 2009, at 12:29 PM, irockstocks wrote:

    siri beats earnings and it's the first day this year MF doesn't write an article about siri............

  • Report this Comment On November 05, 2009, at 1:54 PM, miteycasey wrote:

    Its third-quarter net loss was $149 million, or 4 cents a share.

    Still not making money.

  • Report this Comment On November 05, 2009, at 2:08 PM, wordcarr wrote:

    The Fool's writer is correct, except for calling sat radio a quality product.Trying to be everything to everybody is a trait of lowest common demoninator.Not enought people to pony-up for what the can get for free, simple as that!! Sat radio in it's present form is bogus.The believers can only hope that the FCC allows SIRI to sell ads and have earth repeater stations.This is the only way sat radio can stay a float.Even then it would be a slim chance, earth radio as the author stated is linked to the location.Just like politics, all radio is local.

  • Report this Comment On November 05, 2009, at 2:14 PM, irockstocks wrote:

    Excluding one-time items, the satellite radio provider broke even on a per-share basis.

  • Report this Comment On November 06, 2009, at 11:04 AM, Optionsforfun wrote:

    Anyone who ended up with a small fortune as a result of Sirius started with a large fortune (and lost 99% of it).

    This stock once sold for $60 and is now valued at 60 cents. Yeah, that seems like a great investment to me (if I could have found shares to short).

    But you just keep thinking it's a good investment.

  • Report this Comment On November 06, 2009, at 11:39 AM, markofzorro wrote:

    Your survey only asks if Sirius is the world's scariest stock or will take off. There is a chilling third choice ticking away in my portfolio, the world REAL worst stock:

    SNG: Canadian Superior Energy. I took a flyer last year -- tons of mineral rights, commodities going up, the US dollar heading into the toilet, etc. Shortly after I plunked down a few thousand bucks at the roulette wheel, the CEO announced that due to a minor oversight SNG was liable to $60M (about the worth of the company) to a misunderstanding about sharing mineral rights.

    Many of us suspect that management owes the money to itself and their buddies in the next shell corporation. The last few months have been littered with absurd buy out offers that would wipe out shareholders from other dodgy-sounding mining companies endorsed by "management." Finally sanity intervened and SNG is where it belongs: bankruptcy. Amazingly the stock has risen from one 20th what I paid for it to 1/2. There is so little value left that I am holding out on the thin reed that there will be a few cents for shareholders at the end of the tunnel.

    After all, whoever bought the shares at 20 cents and bid it up to 50 cents must know something, right?

    I've written it off as a total loss and educational expense.

    I propose measuring bad investments on the Madoff scale, analogous to the Richter Scale of earthquakes. Although he worst earthquake ever measured was a 9.5 in Chile in 1960, Wikipedia estimates that the worst quake in history was 65 million years ago, when a huge object hit the Yucatán Peninsula (causing Chicxulub crater)causing a quake magnitude 13.

    Losing all your money to Madoff might be a 10. You could get up to 13 by losing all the money you borrowed on your credit card to Madoff.

    I'd say SNG is a 9.5. Can Sirius really be in this league, fools?

  • Report this Comment On November 06, 2009, at 1:15 PM, skinko wrote:

    I know it’s critically important to check your emotions at the door when you pick stocks, but I can’t do it with Sirius XM Radio.

    I live in Littleton, Colorado, the home of Columbine High School.

    “[Howard] Stern reportedly said on his nationally syndicated radio show the day after the April 20 [Columbine] shooting that some of the girls fleeing the violence were "really good-looking" and wondered on the air whether the gunmen tried "to have sex with any of the good-looking girls."

    After Stern made this remark, Sirius saw fit to pay him $400 million to move to their satellite radio format. I’ve had nothing but contempt for Sirius from the day they hired Howard Stern.

    This is the first time I’ve ever enjoyed watching a corporation go down the tubes, but if Sirius XM goes bankrupt and disappears, it will be a good riddance as far as I’m concerned.

  • Report this Comment On November 06, 2009, at 1:21 PM, AnnefromBelgium wrote:

    I can only note with astonishment that the Fool writes positively about SIRI in one article and really negatively in another one (published with one days interval). I suppose both are right, but is'n there any final Fool-editor that tries to put the pieces together or AT LEAST mentions the 'other article'???

  • Report this Comment On November 06, 2009, at 3:49 PM, wuff3t wrote:

    Anne,

    You just need to read a little more about what TMF is about. There are official positions but they have many writers, all of whom are free to agree or disagree with the official positions. This is a great advantage to anyone who doesn't want to simply blindly follow a single analyst's recommendation (I'm not suggesting you do, by the way) and then look for confirmation bias. I often find myself confused by the TMF writers' differing opinions, but I love that confusion - it makes me think a whole lot more about the investment I'm thinking of making. I wouldn't have it any other way. A lot of people seem to be put off by the absence of clarity, and just want a simple directive as to whether to buy, hold or sell. But if it were that easy we'd all be rich...except of course we wouldn't 'cos there'd be no bargains as we'd all be buying and holding and selling exactly the same things etc...

  • Report this Comment On November 06, 2009, at 5:17 PM, BritExPatHouston wrote:

    I agree with most of the comments regarding the condescending tone of this article but what made me laugh most was "For starters, putting money into Sirius XM is simply gambling, not investing".

    Especially over the last 10 years, the Stock Market is a casino & everytime you buy a stock you are "gambling" that it will go higher rather than lower. As NOBODY (yet) can predict what any individual stock will do at any moment, its somewhat of a crapshoot each time. Yes you can analyze to death the stats. & fundamentals & track records etc but EVERY stock goes up & down at semi random time-frames. Sometimes it just takes balls, patience or blind luck to stay the course when your stock starts dropping right after you buy it (for no apparent reason).

    There are so many 'insider' activities these days that the layman investor is looking back in time at realities that have already occurred and can only jump on the bandwagon or be contrarian.

    Lighten up Philip, & let us "gamblers" have our moments of glory!

  • Report this Comment On November 06, 2009, at 5:27 PM, wuff3t wrote:

    BritExPatHouston,

    First, improve your grammar: it's really difficult to actually understand what you're trying to say.

    Secondly, do try to think about what you are trying to say. For example:

    "There are so many 'insider' activities these days that the layman investor is looking back in time at realities that have already occurred and can only jump on the bandwagon or be contrarian."

    ..really means nothing, does it...? As looking back in time at realities that have already occurred is the only way you can look at realities that have already blah-blah-blah.....

  • Report this Comment On November 06, 2009, at 5:37 PM, BritExPatHouston wrote:

    Lighten up Wuffy

  • Report this Comment On November 06, 2009, at 5:58 PM, booyahh wrote:

    On November 06, 2009, at 1:21 PM, AnnefromBelgium wrote:

    "..is'nt there any final Fool-editor that tries to put the pieces together ..."

    Well, there's always the Almighty. Unofrtunately, the Almight does not write articles for the Fool.

    Nobody (at the Fool or elsewhere) can put the pieces together - only you can do that.

    I personally think all SIRI has to do is survive. By simply doing that, it'll end up doubling or tripling in the next few years.

  • Report this Comment On November 06, 2009, at 6:36 PM, wuff3t wrote:

    BritExPathouston,

    Eh? Lighten up yourself. In other words either post something that suggests a belief in some kind of investing strategy, or give up (because why are you here if you think nothing makes sense).

    I did not mean to belittle you but the stock market is not a casino, and in suggesting so it was your own tone that was condescending, not the author's...

  • Report this Comment On November 06, 2009, at 11:12 PM, rgon1969 wrote:

    I'm new at individual stock investing, however, I've studied people (as an active lender) for nearly 40 years. It seems that "shills" (meaning those people in the audience that promote a product or service for pay) often use harsh language and personal bashing to put down those who would like to just stick with the facts of the matter being discussed.

    From the above discussions I would surmise that the majority of the folks that are promoting this product are acting like "shills". I don't own any sirius stock yet, but I am going to study their financial history to see if progress is being made. That will be the basis of my decision to buy.

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