How are shares of Sirius XM Radio
The satellite radio giant's stock dipped below the $1 mark this morning. Believe it or not, this is the first time that has happened this month.
Every time it seems that Sirius XM has left a sub-buck price in the rearview mirror, a price on the wrong side of the decimal awaits a few highway exits later.
Fundamentally, there are no reasons to be alarmed.
- Sirius XM posted another strong quarter last week -- and raised some components of its guidance.
(Nasdaq: LCAPA)earnings report this week offered no reason to worry that John Malone may unload his 40% stake in Sirius XM.
(NYSE: F)has warned of tough year-over-year comparisons during the second half of the year for auto sales, but Sirius XM's free trial conversion rates are up and its churn is down.
In short, there aren't a lot of lights blinking amber at this point. DISH Network
Howard Stern -- Sirius XM's largest exclusive celebrity -- is still a question mark. However, the answer is coming soon. Sirius XM indicated that Stern should have an announcement before the company's third-quarter call.
So, once again, market volatility claims another buck breaker. As a high beta stock, Sirius XM will be hard-pressed to resist selling waves in other securities. The economy's iffy recovery is also going to exaggerate these moves with consumer-facing leisure companies.
If the economy holds up and Stern doesn't serve up a bombshell, it's really just a matter of time before Sirius XM lands to the left of the decimal point.
One day, it may very well be for keeps.
Is Sirius XM worth more or less than $1 a share? Share your valuation argument in the comment box below.
Longtime Fool contributor Rick Munarriz is a subscriber to both Sirius and XM. He does not own shares in any of the companies in this story. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance.