Sirius XM App Available for iTunes: The Trade 36 comments
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The long awaited Sirius XM (SIRI) app has finally launched in iTunes (AAPL), as the picture below shows (click to enlarge).
This app has been long awaited and could mean positive things for Sirius. I do not know when the app first launched, but Sirius stock took off at about 12:30 PM Wednesday June 17, 2009 and continued to rally after the market closed.
I guess the big deal is that this is just the beginning for Sirius with these portable devices, such as the Apple (AAPL) iPhone. If it has success, I am sure we'll see similar apps for other phones like those of Palm (PALM), Blackberry (RIMM), and even the myTouch by HTC, which uses Google's (GOOG) Android Operating system. This is much cheaper for Sirius (as they don't need the actual radio like in vehicles), and if it is successful will add to their bottom line.
Some quick facts I can state about the app are: it does not include the Howard Stern channel (which people seem to be upset about), it's free with Premium SIRIUS or Premium XM Radio Online subscription (AKA costs $2.99/month to upgrade car radio to internet, or $12.95/month for internet radio without car radio), and they are giving a 7 day free trial (which is a great idea, in my opinion).
I never believed this would mean anything for Sirius, but the hype is real. I was just reading some tweets on Twitter and people are excited to download this application. It looks like this could be a very bullish sign for Sirius, which is why I will outline this option strategy I have been using to get my shares cheaper with a large upside. (Learn more about this strategy here).
Sirius Strategy: Buy Sirius and sell the December $1 call option for $10 per contract (perhaps even higher depending on how high the stock gets on this news). Yes, this locks your shares up, but if you plan on holding the stock anyway, and would be happy with 333% gain ($1 - 30 cents) this doesn't seem to be a bad idea in my opinion. Let's say you bought in at market close June 17, 2009 for roughly 40 cents a shares and sold the rights to it for $1 come December for a dime a share. Your cost basis would drop to 30 cents a share (25% downside protection) but the stock has to more than double in less than a year in order for you to be called out. The current options market is factoring in a 39.9% chance that Sirius is at or above $1 by December, so chances are you'll keep the stock, but this means you can generate more revenue from it and write it out for another expiration when the time comes.
Disclosure: Long GOOG, PALM, SIRI
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This article has 36 comments:
Anyway, Sirius XM is is cost cutting mode. There is no way that can afford to pay Howard anymore to get this launched via Internet.
The argument that Siri still has lots of other programming is a copout. If you start slicing off the key pieces of content, the rest is just fluff. Sports and Howard are the biggest draws, as well as the biggest expenses of Siri. These expenses have greatly added to the financial stress the company has seen. If they can’t get this content onto the i-phone, they can’t successful market this product. Although they might have contractual restrictions not allowing them to add this content, that doesn’t change the reality of the situation. This is becoming all too familiar with this company. Apparently, they overpay for content but they didn’t have the foresight to have contracts allowing for other means of distribution outside their receivers.
The only thing that makes any sense to me would be if they are holding back on the iPhone because a Blackberry deal is in the works. Remember that Howard endorsed the Blackberry a few months back as "The Way to Go".
On Jun 18 01:45 PM yomann wrote:
> It's sirius xm, not Howard Stern radio! He is a very important part,
> but if you think it's all about him then your way off!! What's gonna
> happen when he gets too old and shrivled up? Come on! Let's look
> to the future! Would sirius xm survive without Howard? If not, then
> well it's not worth it! Yo
gosh, what's wrong with me?
Help Help help
Relmar, sweetie...where are you?
I guess it’s just easier to point to a potential problem that plagued other stocks with larger spreads in which the uptick rule could have prevented such a quick decline. You don’t need to hit the bid to short SIRI. The spread is only a penny. Naked shorts are another issue but that’s not an uptick rule issue. It’s not going up now because even the alleged savior of SIRI (the i-phone) was planned poorly and appears to be too little to late while missing a great opportunity. All too familiar with this company. I’m long SIRI and exhausted trying to wait for the light at the end of the tunnel.
On Jun 18 02:10 PM jmsithy wrote:
> This stock would of been down reguardless if howard was there or
> not. This stock has done nothing since March but gained .15 for six
> months which is unexceptable / Looks like the only way we see an
> improvement is when the SCC and the Obama Administration puts in
> effect of the uptick rule because of all this rapid short selling.
> I can only be in for 1 more month hope to see if it will at least
> go up from here all we say was more of the same short selling Technical
> BS this will not go below .30 and be .33 to .35 for another 2 to
> 3 weeks
From a trading perspective, it puts quite a damper (so far) on today's trading, but on a long, it might just be the beginning of a long segue into Howardless radio, therefore a step in the "long" direction.
On a side note, it appears now that Howard may still be part of the selection at a later date. Yo
On Jun 18 02:10 PM JamesPS wrote:
> I agree to a point, but from an inventor point of view its a huge
> miss. Look at all the bad press this is received. The stock would
> have jumped up to .50 or higher has Howard been available. Instead,
> we are looking at a 10% decline from yesterday, on the bad news.
> I've got to believe that Mel doesn't have a clue about the market.
> I know they are trying to control costs, but sometimes you have to
> spend money to make money. In other words, I'd spend 1 million to
> make 2 million.
>
> The only thing that makes any sense to me would be if they are holding
> back on the iPhone because a Blackberry deal is in the works. Remember
> that Howard endorsed the Blackberry a few months back as "The Way
> to Go".
Check it out if you got an iPhone. It'll make the wait for live streaming easier.
On Jun 18 05:10 PM I'm Not Jim Cramer wrote:
> They CAN'T put MLB on the phone because their contract ONLY covers
> transmission through satellite, NO other medium. Absent a new contract,
> you will NEVER have those sports broadcasts on the iphone!
felt like a fool yesterday when sold a third at
.3975.......just because if it could pull a F-up it would...today, guess
what ....it was a f-up...I wonder how much HStern wanted?
if it was anything over 5 million, then good decision, if it wasn't
.......well lets see how long the shorts work it over till the next
earnings report...oh..I said that already. oh, at least now i feel like a
third of a hero.
I think this my be at the root!
Sirius XM Extends Its Reach To A Global Audience
June 18th, 2009 Goto comments Leave a comment By Brandon Matthews
Despite the media’s attempt to quell enthusiasm regarding Sirius XM’s (SIRI) new application for Apple’s (AAPL) iPhone and iTouch devices, and despite a short selling attack that occurred on the news, Sirius XM has never looked better, as witnessed by the initial number of downloads of the new app.
For those that are fortunate enough to have been born with a brain that allows them to think for themselves, and took the time to read the company’s press release rather than the onslaught of negative press regarding Howard Stern, a unique opportunity has evolved. That opportunity lies in the fact that Sirius XM has now extended itself globally.
Yesterday, Sirius XM was only heard in the continental United States. Despite being available online, the company required a U.S. address in order to subscribe. I just called the phone number for international subscription access, and was told that Sirius XM Radio is in fact now able to be received anywhere in world. The call center went on to say that they have been busy all day setting up new users.
For those that may complain about the current absence of Howard Stern, rest assured he will be added in my opinion as the demonstration presented at the annual Sirius XM investor conference last month showed an iPhone that was tuned into the Howard 100 channel. Regardless of what may or may not occur, the one fact remains that as of today, whether you live in England, Europe, Asia, India, Alaska and Hawaii, South America or in the middle east,wherever an Internet hookup exists you can now stream Sirius XM Radio to your laptop, desktop or iPhone. All you need is an Internet connection of any type, including wi-fi.
For information about setting up an account outside of the United States, the company press release asks consumers to call the following number at (toll): 469-221-5200. Howard Stern may be popular, but the 120 channels that are being offered at this moment to the entire world make this application a strong asset to the company.
Another hidden gem in all of us, lies in what appears to be a true partnership with Apple; the details of which have yet to be released. Let the lemmings focus on what is not in the press release. The smart money will no doubt focus on what is.
Position: Long SIRI
On Jun 18 06:15 PM itsjust$ wrote:
> well then theres this....
>
> Sirius XM Extends Its Reach To A Global Audience
> June 18th, 2009 Goto comments Leave a comment By Brandon Matthews
>
>
> Despite the media’s attempt to quell enthusiasm regarding Sirius
> XM’s (seekingalpha.com/symbo...) new application for Apple’s
> (seekingalpha.com/symbo...) iPhone and iTouch devices,
> and despite a short selling attack that occurred on the news, Sirius
> XM has never looked better, as witnessed by the initial number of
> downloads of the new app.
>
> For those that are fortunate enough to have been born with a brain
> that allows them to think for themselves, and took the time to read
> the company’s press release rather than the onslaught of negative
> press regarding Howard Stern, a unique opportunity has evolved. That
> opportunity lies in the fact that Sirius XM has now extended itself
> globally.
>
> Yesterday, Sirius XM was only heard in the continental United States.
> Despite being available online, the company required a U.S. address
> in order to subscribe. I just called the phone number for international
> subscription access, and was told that Sirius XM Radio is in fact
> now able to be received anywhere in world. The call center went on
> to say that they have been busy all day setting up new users.
>
> For those that may complain about the current absence of Howard Stern,
> rest assured he will be added in my opinion as the demonstration
> presented at the annual Sirius XM investor conference last month
> showed an iPhone that was tuned into the Howard 100 channel. Regardless
> of what may or may not occur, the one fact remains that as of today,
> whether you live in England, Europe, Asia, India, Alaska and Hawaii,
> South America or in the middle east,wherever an Internet hookup exists
> you can now stream Sirius XM Radio to your laptop, desktop or iPhone.
> All you need is an Internet connection of any type, including wi-fi.
>
>
> For information about setting up an account outside of the United
> States, the company press release asks consumers to call the following
> number at (toll): 469-221-5200. Howard Stern may be popular, but
> the 120 channels that are being offered at this moment to the entire
> world make this application a strong asset to the company.
>
> Another hidden gem in all of us, lies in what appears to be a true
> partnership with Apple; the details of which have yet to be released.
> Let the lemmings focus on what is not in the press release. The smart
> money will no doubt focus on what is.
>
> Position: Long SIRI
Think about it..
Sirius is here to stay Howard or No Howard or this would of gone lower where Mr. Stupid wants it to be as he is Immitating me now even on other blogs.
The difference is when he is immitating me as Jmsithy he has not sperted any form of intelligence in his blogs like always. not a very good disguise
Why is this guy so popular, what happened to this country? I just don't get it. It's really sad.
Second, There are certainly millions of people who buy Sirius solely for the music, BUT, not enough millions, and they don't pay enough money for this company to make a profit.