A Reminder of What Liberty Sees in Sirius

With Thursday's SEC filing by Sirius XM Radio (SIRI) comes a reminder of just who it is that is steering the ship. That would be John Malone. With 3 seats on the current board and the right to take 3 more, I thought I'd take this opportunity to review just what it is that Liberty Media (LCAPA) sees in Sirius XM.

This video interview with Greg Maffei, Liberty Media CEO & president, and CNBC's Maria Bartiromo, demonstrates the insider perspective of the company going forward. One key point is the fact that Liberty sees Sirius XM as being profitable based on only a 9 - 10 million unit, annual auto sales rate. Just Wednesday, Goldman Sachs increased their projections to 11 million, which certainly puts Sirius XM in the driver's seat...literally!

Mr. Maffei goes on to describe the multiple platforms that Liberty envisions Sirius XM will be able to expand its subscriber base with. The Annual Shareholder Meeting scheduled for next month coincides with first quarter results. This will present an exceptional opportunity for the company to forge a definitive plan for growth.

Position: Long SIRI

Comments

[connorport:]

Most here were smart when they bought all the way to the bottom in bulk. I liquidated my uppers to buy 2500 shares of GE @ 6.05 and 3000 shares of APWR @ 3.53 and 5000 shares of F @ 1.70. I guess i am stupid as all of these are up over 100% in two months. Get in or get run over. Anyone who has to brag about being smart is probably an idiot. Show us the money or go blog elsewhere.


On Apr 24 04:36 PM BChargers wrote:

> OK listen,
> I understand why I seem so much smarter than you.
> 1. I AM very smart and
> 2.. Most SIRI investors are dumb.
> deal with it.
> They have to be otherwise they wouldn't own SIRI. Now feel free to
> prove my point by posting how wrong I am and how great your $60.00
> down to .40 cent company is doing financially.
> .

Apr 24 05:52 PM

[burnout:]

connorport,
I will have to look into that, but if I was conservative I probably would not have 200K of SIRI in the first place. Thanks for the idea.

Apr 24 06:01 PM

[connorport:]

No one knows yet. That's the big question that's our discussion today. We usually don't have an idiot here ranting and raving because his wife won't let him put his money where he wants because she thinks shes smarter than he is. Some of us think this equity has huge potential.


On Apr 24 02:22 PM ozman wrote:

> What does Liberty have planned with the backseat program of Sirrius.
> I am new her so.... Hello!

Apr 24 06:12 PM

[connorport:]

at one point when SIRI hit .63 the Jan 1.00 calls were trading as high as .26. Thats $39k in the bank today and 150k if it tops the 1.00 mark by then. That basically guarantees you either 1.26 for your shares or brings your average down to .09 a share. Its really a no brainer. I personally would do the Dec 2's. Also if you sell covered calls @ .26 and buy back to cover at say .15 you just made $16k profit and still have your shares to ride. You hold the edge when you own the equity. You could essentially do this every couple of months. I look at it as a guarantee of income where i hold the advantage at all times unless the stock runs to $3 or something which is highly unlikely. I've Actually done this with several equities and have purchase other equities free and clear that have popped up over 200% again.


On Apr 24 06:01 PM burnout wrote:

> connorport,
> I will have to look into that, but if I was conservative I probably
> would not have 200K of SIRI in the first place. Thanks for the idea.
>

Apr 24 06:25 PM

[connorport:]

Sorry i meant to say Dec 1.00 covered calls.

Apr 24 06:27 PM

[connorport:]

Sorry i meant to say Dec 1.00 covered calls.

Apr 24 06:27 PM

[AmericanThi...:]

Why is there no mention here of the fact that ALL of the wireless service providers give their equipment away or sell it at a steep discount? It is not the hardware that makes them money but the monthy payments they receive for services. Sirius is merely following the same successful business model.

Apr 25 12:19 AM

[Davidpeers:]

Hey connoport...I DO like your APWR also!!!! Goona be a 50.00 stock in a year or maybe a little bit longer??? Either way, it's a keeper!!! Also, LONG AND STRONG SIRI XM RADIO.....Both great growth companies!! Anyone who doesn't know about APWR...Check it out!!! You'll be glad you did..

Apr 25 05:04 AM

[taterleg:]

I keep reading all these blogs about free radio being the way to go and paying for sirius will never work. All I know is back when I was a kid ( I am now 50 ) I used to watch TV for free. When I was in my teens there was a thing called ON TV that you had to pay for. Some people purchased this option. But most people said that they are not payiing to watch TV. At some point I believe when I was in my 20s I remember saying, " one day we will all have to pay to watch TV". Here we are. It cost me about $60.00 a month to watch TV. And I am sure on avg eveyone on this site pays to watch also. Now here we are with radio. And to change my quote a little. " One day we will all have to pay to listen to the radio".

Long live Sirius

Apr 25 11:03 AM

[User 368600:]

On Apr 25 12:31 AM BigVinnie wrote:

You want to call people stupid that chose to gamble?

I would call dumb gamblers dumb.


> >
> Down with some facts for your retarded A$$ since you cannot understand.
>
>> Are you crying that you would have to pay a measly $6.99 a month
> for a basic music subscription, or $12.99 for music, and talk show
> content? It isn't any ones problem or fault that you are so thick
> headed to realize that it's cheaper than buying a music CD for $12.99
> and only liking 1 of the 10 songs on that CD!! You are dense, and
> you don't understand the the metrics of this company and the cash
> this company generates quarter to quarter. Sirius/xm may not generate
> the revenue that you see from a comcast cable company that has 24
> million subscribers, but then again sirius/xm uses a fraction of
> the overhead that comcast cable uses.
> I like satellite, I hate terrestrial radio. I hate commercials. Spending
> $12.99 a month doesn't bother me, I have money. I'm also fat and
> can go on a diet anyway, and eating one less lunch or dinner that
> would cost me $12.99.... satellite radio is cheap, the price you
> pay not to hear commercials is enough for me to be sold.
>
> What can $12.99 get you........

Do you know how much dog s#!t you can buy for $12.99 a month?
Dog s#!t is cheaper than a CD also.
People DONT WANT DOG S#!T EITHER.
How much of your money did you invest in dog s#!t?
Is your "retarded A$$' too cheap to buy tampons each month?
Cant you afford tampons?
If you are so poor that you cant afford tampons each month why dont YOU STFU and stop giving financial advice to people that
realize farts are not entertainment worthy of paying money for.
I hope you own lots of SIRI you rude crude obnoxious POS

Apr 25 02:17 PM

[User 368600:]

On Apr 24 05:52 PM connorport wrote:

> Most here were smart when they bought all the way to the bottom in
> bulk. I liquidated my uppers to buy 2500 shares of GE @ 6.05 and
> 3000 shares of APWR @ 3.53 and 5000 shares of F @ 1.70. I guess i
> am stupid as all of these are up over 100% in two months. Get in
> or get run over. Anyone who has to brag about being smart is probably
> an idiot. Show us the money or go blog elsewhere.

ANYONE WHO HAS TO BRAG ABOUT WHAT HE BOUGHT IS
PROBABLY A BROKE PAUPER WHO COLLECTS ALUMINUM CANS SO HE CAN LISTEN TO HOWARD STERN FART.
CONNORPORT ALSO WROTE:
I am a co owner of Multi million dollar business that a we started 7 years ago so i understand business and what it takes to run and maintain credit and operations and customers. Our customer base includes Honeywell, GE, Johnson Controls, Itron, Home Depot etc. If you're trying to insult someone find someone else. We ate dirt to build our business and for that i'm proud. It is my largest investment. I learn things here from intellectual people that carries to that success and creates jobs for Americans.

My point is that we had negative balance for the first couple of years of business with about 10-15 employees and that has grown to over 100 employees and will grow by another 100 this year alone doubling our books. I am fortunate to be in a recession boosted business. SIRI's business model has convinced 20million people to pay them $13 a month so i don't see where you're ignorance is going here? Maybe you just weren't smart enough or lucky enough to be in a couple of months ago. Its call risk reward. If you were enjoying some risk rewards right now then you wouldn't be bashing everyone here. Its not too late. buy @ .42 and hold for a year or two and you will probably have something good to blog about.
>
Why dont YOU go blog elsewhere?

Apr 25 02:31 PM

[burnout:]

I personally can tell the difference between bragging and giving information to show one knows what one is talking about. Especially when the information given is consistant and reliable over many months or years. It is those that spout off about how great and wonderful they are with nothing to back it up that I find suspect. When one establishes a track record of being right I have respect for that person. Even if a person is wrong on a regular basis but keeps writing under the same name to prove he is not afraid to admit he can be wrong I have respect for that. I have no respect for people that change the name they comment under every time they make a fool of themselves thinking no one will notice.

Apr 25 03:49 PM

[eli09:]

If you like quality with quantity, then go with Sirius XM. You also have the right to access free radio if you want, but we have the more advanced one, the satellite radio, which offers you great service. If you don't like the sevice, then don't read the articles regarding Siri. As simple as that.

Apr 25 03:55 PM

[BigVinnie:]

Thank's for letting me know I got the message across to you. LOL.....You are a loser with a big fat L.

On Apr 25 02:17 PM FloorHomo wrote:

> I hope you own lots of SIRI you rude crude obnoxious POS

Apr 25 07:09 PM

[Suncatcher:]

BChargers, I think you are confusing smart with angry. I hear that is a common symptom of angry people.


On Apr 24 04:36 PM BChargers wrote:

> OK listen,
> I understand why I seem so much smarter than you.
> 1. I AM very smart and
> 2.. Most SIRI investors are dumb.
> deal with it.
> They have to be otherwise they wouldn't own SIRI. Now feel free to
> prove my point by posting how wrong I am and how great your $60.00
> down to .40 cent company is doing financially.
> .

Apr 26 12:09 AM

[I'm Not Jim...:]

Connorport and Brandon: Well I'll be damned! It turns out that you're both traders in disguise. Already knew that Relmor was as he is quite open about it. So why do we have to talk about where Sirius is going to be in 2010 or 11, when everybody is making money right now? Buy and hold is completely dead as a philosophy. The internet and computerized trading completely killed it, but many did not get the message. So you like the future and I don't, but we're both doing ok in the present. I'm in until the meeting and out shortly before/afterward, depending on the runup.

Apr 26 02:58 AM

[SiRi - Hope:]

HA - the guys yelling short short short ....yea - how did you make out when the stock was at $.12 then spiked? Good job. Hope you lost your ass.

Apr 26 07:03 AM

[User 368600:]

On Apr 24 05:44 PM connorport wrote:

> Take you're remaining 150k shares @ .35 and sell some covered calls
> once we get the next short covering or institutional buys. Sell 1500
> Dec 2.00 @ say .10 and bring in 15k to either put back or wait for
> the next batch of shorts to buy some more @ .45. Thats 30k+ free
> shares. If the stock hits $2 i dont think you will care pocketing
> the $360k. If it doesn't make it to 2 then Sell 180k covered calls
> @ whatever the rate is at that time. When you're ahead like you are
> than this is the most conservative way to play in my opinion. If
> you dont buy the additonal 30k shares then you've averaged down another
> .10 to .25. This is how im playing. I have liquidated all but 50K
> @ .11 so i have $5500 in these. If i sell 500 @ .10 the i pocket
> $5000 now. i now have $500 in all of them averaging myself down to
> .01. If they hit 2 then i wont cry over pocketing 105k. Is anyone
> else here playing this way. Let me know where i may be wrong.

CONNORPORT ALSO WROTE:
HOW ABOUT THIS. DON'T WORRY ABOUT MY MONEY
WORRY ABOUT YOURS.

Apr 26 08:02 PM

[Spaklow:]

Hey BChargers I'm already ahead 50k in siris stock. What A fool I must be to have bought the stock and continue to hold it, lol. I say if you get in now, in a few months you can double your profit. Sirius is in a bit of a pickle but they are the market in S/Radio. YOu can argue for your Terrestrial or even internet radio but they will die just like the bunny ear tv days. The thing is sirius doesn't only have radio they also offer mobile tv and, soon to be mobile internet through satalite not towers. This means now matter where you are on earth you can listen to your tunes, watch your favorite show, and cheak your emails at speedy rates on the go. Anywho if you look at the future tech advances its not hard to see why this is a good buy.

Apr 27 02:34 AM

[Chuckdaruler:]

Stop looking at the now and visualize the future, just like the TV Broadcast, eventually SD radio will be a norm. And siri has strong foothold on this industry. For less than .50 cent a share, even the basic investor should see $$$$ in less then 6 months. Especially by 2010 when it will be a standard in american autos, whats left of them that is. :)

Matt stop taking your critic's so personal, there will always be some who see things differently just do you homework and provide us with the best information you can. Also what other companies are on the verge of blowing up like nitro in the next 6 months to a year for under $10?

Apr 29 11:54 PM