If Sirius was a good buy at $6.98 it must be a real steal at $4.05, right?
Joan Lappin, president of Gramercy Capital Management, presents a pretty compelling case for buying shares in Sirius Satellite and XM Radio, in spite of the two companies’ struggles over the past year.
Ms. Lappin sees cost-conscious and experienced management teams, strong growth in subscribers and several promising market opportunities as reasons to be optimistic about the prospects of Sirius’ and XM’s stocks pulling out of their current slumps. Among the market opportunities are affinity channels like The Catholic Channel, which will be launched this fall on Sirius.
However… Gramercy Capital Management owns shares in at least Sirius according to this Business Week Magazine piece from April 10 this year, when Sirius traded at above $5, compared to about $4.15 today. When it traded at $6.98 in early November last year, Ms. Lappin named Sirius one of her favorite stocks for the next 12 months and a “potential 50% gainer in this period” according to The New York Sun. “This period” has two months left in it, but it doesn’t look all that good for her fave satellite radio stock.
Please note: SateLink.net does not provide investment advice and this post is for entertainment purposes only.
Update: Howard Stern is seen as important to the success or failure of Sirius, but Bill Tancer suggests that perhaps the move to Sirius is slowly killing Stern’s fame.
Another update:
Most Sirius-related blog posts today seem to be about the commercial for the new, portable Sirius receiver Stiletto:
