By Brandon Matthews
Mr. Goss suggested that he is most interested in subscriber numbers coming out of the call Thursday morning. He indicated that Sirius XM should begin to see a return to subscriber growth, predicting that subscriber numbers would return to levels seen at the beginning of 2009 by the the end of 2010. This would indicate an increase of approximately 600,000 subscribers during this time period.
Another important indicator that he will be looking for is confirmation of continued synergies, resulting from the merger to improve operating cash flows. Mr. Goss remains bullish on the fact that company was able to add $500 million in cash flow during a one year period, pointing to the fact that this does not normally occur even with much healthier companies, and referred to the current environment as “very exciting.”
Mr. Goss discussed the fact that the automotive market remains the company’s main driver of new subscribers. He indicated that Sirius XM is penetrating into more models of new cars, suggesting an increase from 52% of new car models to 58% for the current model year. He also sees the new Certified Pre-owned Programs as having a significant positive effect.
Mr. Goss believes that the company would rather see its stock price recover on its own, rather than institute a reverse split, suggesting that the company is in no hurry to institute a reverse split at this time.
The entire interview can be heard on Satwaves Radio on BlogTalkRadio.
Position: Long SIRI