Sirius XM Radio
Should you Buy Now?

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By Germanics
July 30, 2008

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Should I buy now? There's plenty of time.

Sirius Satellite Radio is selling at a discounted price for the time and may continue to do so in the next two weeks or longer. Let's elaborate on an excerpt taken from an article at Reuters, "Sirius plans to issue about 262 million shares, with about 184 million offered at a fixed price of $1.50 per share, compared with Monday's closing price of $1.88 a share. The remaining 78 million are expected to be offered later." Source--

In yesterday's pre-market trading, Sirius (SIRI) traded over 23 million shares in volume. Closing out the day SIRI traded at a total volume of 270,570,284 shares of which 184 million were at the fixed price of 1.50 a share. We noticed later in the day the shares came to a position of 1.60 a share. Continued short interest and low individual investor confidence will keep the price within a projected .20 or .30 cent range of the current floor pending PR news and quarterly reports. Note** Risks to our recommendation include a possible coming 'short squeeze' (Where those who are selling Siri hoping the price lowers are unable to recover their borrowed shares at a reasonable price and must scramble among others to do so, drive the price up.) and unexpected PR News (Public Relations Announcement concerning the companies efforts, as well as quarterly report financials).

This particular investment is not for the faint at heart but rest assure the rewards will out way the risk in the years to come. So pick a target price your comfortable buying in at, and use "fun money" -- (Money you do not mind losing, and do not mind having tied up for at least 5 years) when investing.

Those of you who bought in at higher prices would benefit from the current valuations to cost average down your original investment. (Cost averaging down benefits you by lowering your original buy-in price acquiring more shares at a cheaper cost, so that when the stock recovers you also recover the temporary losses you may have had prior to the new purchase of shares.)

Cheers, J.P. Germanics