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Positive Cash Flow Signals New Era for Sirius XM

Positive cash flow signifies many things. First and foremost is the future ability to tackle the billions in debt owed. Secondly, is the ability to advertise on a national scale. Sirius is going to be able to do both soon. Mel stated the advertising campaign will be the biggest in SatRad history and kicks off on November 15. Personally, I can't wait to see these ads, right before Christmas. It is really brilliant what Mel has achieved in the past 18 months. A miracle, if you really examine the facts, has been accomplished. The SP will go up from here along with periods of consolidation, but up nonetheless. The advertising will bring on more subs which in turn will make the debt issues begin to disappear in the future. This seems to be the biggest question mark for investors. Namely, can Sirius get in a position to not only make a profit but also pay back the debt owed after 2011. It certainly seems likely if the company is able to continue increasing subs and decreasing costs. In February neither of these seemed feasible, but today is a different day indeed! The advertising campaign, according to Mel could not be affected until the debt issues and the merger were complete. This was due simply to the fact the company had no extra money. Now that the FCF has become a reality, the sky is the limit. Everyone knows the power of advertising and with the backing of Direct TV along with the numerous connections Mel has in the entertainment community, one can feel assured that these ads will be "First Class" when they hit the air on November 15! This is only possible because Sirius has turned the corner on many negative issues which has plagued it in the past 18 months. If Sirius can increase subs to over 20 million (a question of when and not if really), due to increased advertising, it is easy to see where the money for paying the debts will come from. All of this amounts to one of the most remarkable recoveries in the history of business, and for those who have "hung in there" through it all are on the verge of being made whole again. It is an exciting time for Sirius!

Long SiriusXM

New XM SkyDock Offers Sirius Investors Nice Profit Margin

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You are absolutely right! Any pullbacks at this point are great buying opportunities. It hit .65 on friday, but I think it will still go a bit lower in the coming week. I also think it could very well be the last pullback we see before the 3Q call. It is just too risky to sell at this time. We all know that Sirius can go over a dollar at any moment as we approach November. Vongage is a great example of just how fast a stock under a dollar can climb on good news; Sirius will be similar in my opinion. Only about 6 more weeks left to accumulate at under a dollar, if that. No chance of ever being delisted! The reverse split is not as bad as some have made it out to be, and if it is needed to make compliance after a year...so be it. Sirius has proven itself to be a viable investment opportunity since February. If it wasn't a good investment it would have already gone bankrupt...but I don't believe that was really ever in the equation. Siri Doom, you should buy back in this week on the pullback and stay in until the 3Q call. It might make you a bit happier come Christmas time!

Keep the faith!

Long SiriusXM

What Will the Soon-to-Be-Released iPhone App Mean for Sirius XM Investors?

Things are continuing to look better and better for SiriusXM. This is just the beginning of a huge turnaround. Just wait until all the smartphones have the application. The future is very bright indeed.

Long SiriusXM

What Good Will the iPhone App Do for Sirius XM?

This is certainly a good marketing opportunity for SiriusXM. It will be good when it finally arrives.

Long SiriusXM

Sirius XM Has Long Term Staying Power

Relmor is always a good read...and good information as well. The company is in the best position it has been in quite some time. There are many catalysts that will help to propel the SP higher. I agree with Gino when he suggests the price will not elevate beyond .75-1.00 until the care industry recovers. I would guess it will be sooner than 2 years down the line as there are many players at work to find a solution to this debacle. It will come when confidence is restored...and we are seeing signs of this as we speak. There are signs that the recovery is underway, and with each passing day the future of Sirius looks brigher.

Another thing that was good about this article is the retraction on how internet radio will be the demise of Sirius. As the author states, "people just want to get into the car and turn on the radio that comes with the car". Not too many people are interested in having a setup as described in their car. Another good point was brought up by Brandon Matthews a few days ago about the batteries not having the ability to be a "24 hour Jukebox" which supports the idea that Sirius will not be replaced.

Now I have a question for the great one, Relmor. Will the Nasdaq lift the suspension on its listing requirements, set to expire on the 20th of April, or will it be sending the delisting letters to the more than 300 companies under a dollar?

and...if the delisting letters are sent, when would you think that Sirius would do a RS to get above the dollar?

Thanks for a great article Mr. Lattarulo, it is very refreshing to read something not so dismal about the future of SiriusXM.

Long SiriusXM

uSirius iPhone Application Is Denied

Attorney wranglings can be translated as conflict of interest until the Liberty deal is finalized. In many ways Sirius XM hands are tied on any new deal making as their own future is still in question. Certainly Malone and Mel would have to agree on the best way to proceed with any Apple contract after the pending agreement is secure. This is not to say that it will never materialize, but to do it for "free" would not be in the best interest of Sirius XM. Of course there would be the exposure that Apple could bring to the table, but Liberty and Direct TV have just as much if not more pull in the area of marketing. Although this development on the surface may seem negative, it could actually be a positive going forward. Hopefully the influence of Liberty will produce some better decision making on the part of Sirius XM. Rushing in to deals has not proven to be the best course of action thus far for Sirius XM, and any deals that were in the pipeline befor Liberty will have to be placed on the back burner for now. There is still time to take advantage of the distressed SP, so buy, buy, buy...this opportunity will not be around forever, and we can only hope that Malone is very interested in turning Sirius into a viable investor option. At least the Apple application was not completely denied.

Long SiriusXM