Siri or XM for long term?

[RapStar]

Looking at Sirius Satellite and XM radio, these are often talked about stocks on shows like Mad Money and Marketwatch. One of them will be a long term solution to radio and possibly enter other channels. I'm looking for a 5, possibly ten year investment as I don't expect these to move rapidly, but much rather "evolve" into winnners.

For the long haul, does anyone have a recommendation as to which one may be the best bet for long term growth?

 

[Darwinian]

neither buy THK

 

[RapStar]

Thanks for the analysis, very convincing!

 

[moethepuppy]

It's really simple, the two companies continue to burn cash because they are overpaying for content and spending too much money to pull in subscribers. The key is which company can start showing positive operating cash flow. I really haven't followed either company that closely but I remember hearing reports that this could happen in the fourth quarter of this year. Once that happens, you should start seeing postive movement on their respective stocks.

 

[Deuce-Deuce]

Disclaimer : I have a position in SIRIUS, so you may want to discount some of what I post but here goes.

I believe Sirius has the advantage as far as content goes NFL,Stern,Nascar coming on board in 2007.

XM has the advantage as far as equipment goes more polished and refined Sirius equipment looks like radio shack junk..Also some Sirius customers that dont like stern have switched but this is a small number

Both may face a challenge from HD radio but from what I've seen HD radio has poor content and requires a new radio to get it (currently) anyone remember AM stereo?? only advantage here is its free other than new radio required.

Bottom line Sirius is cheaper to get into,better content, IMHO better long term but has higher dilution. XM Better equipment , short term winner but higher entry cost
My recomendation is take 75% Sirius 25% XM and use sharebuilder weekly plan to buy more of each over the next 3 years. you will be happy. When there is two major players in a field its always wise to invest in both.

 

[RapStar]

Thanks for the opinions guys...very much appreciated.

 

[raidermattk]

i bought XM in 2002 and sold it in 2005 at about a 750% profit. I have had both and like XM much more. That being said I believe both stocks are overvalued right now. I would not buy XM uless it fell under $15.

 

[afawbush]

Probably Sirius because of how low it is right now. It just matters how low you think it will go.

 

[PercocetThreat]

I could never buy either until they merge, they're just killing each other and burning way too much cash.

It was Mel Karmazan (sp??) who said Sirius would be CF positive by the 4th quarter of 2006 back in like January of 2006. There is no way in hell that is going to happen, not even by the 4th quarter of 2007.

 

[Tchocky]

I could never buy either until they merge, they're just killing each other and burning way too much cash.

It was Mel Karmazan (sp??) who said Sirius would be CF positive by the 4th quarter of 2006 back in like January of 2006. There is no way in hell that is going to happen, not even by the 4th quarter of 2007.

My thoughts exactly. Neither of these companies will make any money until they merge. Satellite radio is still a niche market. Americans are too cheap to pay for radio.