4. Sirius Satellite Radio (Nasdaq: SIRI): $6.02
Unless you've been living under a rock, you have probably heard a lot about satellite radio by now. Then again, I hear the reception is still pretty good under said rock, so you really have no excuse for not knowing about Sirius and its only rival,
XM Satellite Radio (Nasdaq: XMSR).
Featuring more than 120 channels of commercial-free music and ad-sponsored spoken content, Sirius and XM have been winning over terrestrial radio's most ardent listeners. By the end of the year, XM and Sirius expect to combine for at least 8.2 million subscribers -- that's 3 million more than they had at the end of March.
While there are plenty of reasons to be excited about both satellite radio players, Sirius -- despite its smaller subscriber base -- seems to have a bright future. In January 2006, Howard Stern will kiss conventional radio goodbye and move over to Sirius. Love him? Hate him? Either way, his syndicated show is an ear magnet. Sirius also has the exclusive satellite radio broadcasting rights to the NFL and recently wrestled the NASCAR contract away from XM.
Despite its share price, Sirius isn't exactly cheap. With more than 1.3 billion shares outstanding, the company already commands a market cap of $8 billion. That's more than the combined -- and multiplied -- total of A.D.A.M., The Knot, and Jones Soda. But XM and Sirius will grow to define the future of audio entertainment. If you're not already, I recommend that you get up to speed on this very dynamic sector. You'll understand the beauty of having only two companies controlling the domestic market.