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3 Reasons to Buy Sirius XM

By Dave Mock – Updated Apr 5, 2017 at 8:49PM

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There are plenty, but here are three biggies.

No matter what's going on in the market or a specific company's history, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks are born from historically bloody times.

Motley Fool CAPS hosts a boatload of opinions from more than 115,000 members on more than 5,500 stocks, giving good reasons to own -- or sell -- a stock.

In the case of newly-merged satellite radio provider Sirius XM (NASDAQ:SIRI), a total of 4,779 members have given a bullish or bearish opinion on the company. Scouring the detailed information packed in pitches and other comments on Sirius XM today, here are three of the top reasons to buy Sirius XM today:

Captive audience. One buy thesis can be summed up simply: How can 18.6 million users be wrong? Some investors argue that the massive base of listeners locked inside Sirius XM-equipped Ford (NYSE:F) and GM (NYSE:GM) vehicles -- not too distant a figure from the 24.6 million subscribers Comcast (NASDAQ:CMCSA) commands -- hold immense long-term value. With several other ways to monetize these millions, investors see lots of unaccounted-for opportunities.

Beaten-down shares. With shares back at their 2003 levels, when Sirius XM was only a fledgling commercial offering, some investors think it's small-f foolish to bypass the opportunity in a beaten-down growth story. With an army of capable partners -- from Starbucks (NASDAQ:SBUX) to Best Buy (NYSE:BBY) to Dish Network (NASDAQ:DISH) -- promoting Sirius XM, some investors make a case that there's more potential value in the company than the market has priced in.

Howard, baby. With exclusive content, Sirius XM is not just another "me-too" media channel. And the providers aren't just sweeping up Hollywood's and radio's B-list, either. The merged company nails down the big dogs of media, including Howard Stern, Oprah Winfrey, and Chris Russo.

Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to check and balance your own analysis. You can read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Sirius XM, just click on over to Motley Fool CAPS and have a look -- it's all free, and your opinion's welcome, too.

More Foolishness:

The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that are helping Tom and David Gardner beat the market by 40 percentage points on average, take a free 30-day trial.

Fool contributor Dave Mock has more than three reasons why he doesn't play poker that much. He owns shares of Starbucks and is the author of The Qualcomm Equation. Starbucks and Best Buy are both Inside Value picks and Stock Advisor selections. The Fool owns shares of Starbucks and Best Buy. The Fool's disclosure policy takes its tequila straight up -- no popping and whistling involved.

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Stocks Mentioned

Sirius XM Holdings Inc. Stock Quote
Sirius XM Holdings Inc.
SIRI
$5.81 (0.00%) $0.00
Comcast Corporation Stock Quote
Comcast Corporation
CMCSA
$30.89 (-2.98%) $0.95
Starbucks Corporation Stock Quote
Starbucks Corporation
SBUX
$84.81 (0.76%) $0.64
Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$65.32 (-5.03%) $-3.46
Ford Motor Company Stock Quote
Ford Motor Company
F
$11.99 (-2.60%) $0.32
DISH Network Corporation Stock Quote
DISH Network Corporation
DISH
$14.27 (-6.12%) $0.93
General Motors Company Stock Quote
General Motors Company
GM
$35.04 (-1.24%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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