The crowd keeps growing at Sirius XM Radio
Inspired by an upbeat presentation at Liberty Capital's
That growth comes with a price -- significant subscriber acquisition costs -- so Lazard Capital's analyst is also slightly lowering his profit outlook. He now sees the company earning $0.02 a share this year, and $0.01 a share come 2011.
Crockett is maintaining his "buy" rating on the stock, making sure that he doesn't repeat the mistake made by fellow analyst David Joyce from Miller Tabak. Joyce downgraded the shares the day before Liberty Capital's conference last week, only to see Sirius XM pop on Friday, following word of the heartier subscriber tally. The stock has climbed 8% in the three trading days since Joyce's downgrade, and the shares hit a fresh 52-week high this morning.
Betting against Sirius XM has been dangerous for bears since Liberty Capital and EchoStar
Sirius XM is now profitable and growing, and the potential for premium radio remains still somewhat open-ended. Recent year-over-year weakness at Ford
The company faces real challenges and carries a lofty valuation. However, as long as Sirius XM keeps raising the bar -- and then clearing it with ease -- you won't want to be on the wrong side of that kind of momentum.
How big could the potential market for Sirius XM subscribers get? Share your thoughts in the comment box below.
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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. The Fool has a disclosure policy.