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Company

Ticker

Percentage

Shares Traded

Current Price

Sirius XM Radio

(SIRI)

Rose 4.5%

112,837,500

$2.19

Cisco Systems

(CSCO)

Rose 1.8%

51,328,00

$15.61

Level 3 Communication

(LVLT)

Rose 1.6%

47,341,000

$2.44

Oracle Corp

(ORCL)

Rose 1.5%

21,566,700

$32.91

Sirius XM Radio - Price Target $2.75

I'm not one to “toot my own horn” often but Sirius continues to make me look pretty smart. I say this because as we know, the stock has the uncanny ability of making one appear brilliant. But in similar fashion, just when you realize you are beginning to understand it, you are left looking in the mirror and questioning if you have any ounce of intelligence left. It’s the sexy girl who likes to play with your emotions just so you can spend all of your money. Well, so far the relationship is looking pretty solid and “my heart ain’t broken yet” – at least not as long as she knows I still have cash in my pocket.

On Thursday the stock reached an intra-day high of $2.25 before ending the day at $2.19 – this is after closing the previous session at $2.10. My “confirmation bias” of $2.75 continues to look pretty good. Just think, at $2.19 the stock now sits a (modest) 25% away from the $2.75 target.

While it may be easy to get ahead of ourselves here and wonder what the rest of the year holds, Sirius investors will be better served to just focus on the month on July for now. We often tend to make mistakes by looking beyond what is really important. I think the month of July will be interesting. Taking it one week at a time and looking for positive 6 to 10 cent gains per week. This would put the stock right around $2.50 just before the Q2 conference call. The rest is up to Sirius to deliver, and I think the company will.

Oracle - Price Target $40

Warren Buffett once said, “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”

If you subscribe to this idea, then the opposite should also hold true. That is to say, when bad management presides over a sound business model, it should be the reputation of the management team that wins out. But regardless of the business, if poor decisions are being made, the business will render poor outcomes.

You will be hard pressed these days to find any management team that deserves more credit than the executives at Oracle. Unlike many giant technology names of the late 80s and early to mid 90s, the company has been able to avoid the depression that seems to be so common today among tech bellwethers. Microsoft (MSFT), Novell (NOVL) and Lotus Software come to mind when talking about stagnation, whether in innovation or stock price.

While investors continue to ask what is wrong with Oracle, let me say that the company has become the victim of its own success to the extent where investor expectations are way too high. This is another way of saying; there is nothing wrong with Oracle.

Level 3 Communications - Price Target $3.00

What can I say about Level 3 except that this has been one of the most dominant stocks over the past three months. The company has added approximately 2 billion in market cap during that span and has shown no signs of letting down. While I see that it still has some challenges ahead, debt has always been a concern of mine. But what continues as some optimism are the synergies the company will have with its Global Crossing (GLBC) deal.

The Global Crossing transaction is due to close later this year. This deal not only makes Level 3 more valuable or even undervalued, but I can’t help but wonder how it makes the company a nice acquisition candidate. I continue to feel Cisco should look at this company for the many cloud opportunities that Level 3 will be able to leverage upon the completion of the merger. If this stock is not at $3 by the end of this year, it will be a huge surprise and a disappointment.

Cisco Systems - Price Target $18.00

Cisco’s recently announced plans for a tablet have brought about some optimism. Go ahead and say it, “Cameron, it doesn’t take much to get you giddy over Cisco." This may be true, but I still have reservations about how the company will execute; this has been my major concern with management. I think this is the only stock where I have admitted a case of emotional attachment, but this was only because I have valued the hard work that I have put toward earning my CCNA. Do you know how difficult it is to correctly assign an access control list on a 2600 router? But I digress ...

As critical of the company as I have been, I am more than willing to give Cisco the benefit of the doubt here. The stock remains cheap by many standards and the company’s equipment still powers more than half of the Internet. If Cisco can make this tablet project even “half effective” there is not doubt there is at least $2.50 to $3 price appreciation left in the second half of the year; six months and counting.

Disclosure: I am long SIRI, ORCL, CSCO.

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