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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