A December To Remember For Sirius XM

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Crunching Numbers

Lexus, one of the many cars that comes with a factory installed Sirius XM (NASDAQ:SIRI) radio, has had more than its share of television commercials this month, including an ongoing series urging viewers to make this a "December to Remember." Sirius XM seems to have taken this advice to the extreme, with an unusually large number of significant announcements giving an investor a lot to think about. The month of December is not yet two-thirds finished and the news coming from Sirius XM Radio has generated enough headlines to last a... Well, you can fill in the blank.

On December 5th, the company announced it had opened a $1.25 billion credit facility, signaling it was getting closer to returning capital to shareholders. The next day the company announced a special $0.05 dividend to be paid on December 28th to shareholders of record as of December 18th. And it wasn't just the news of the dividend that was released; the company also stated that it would begin a much anticipated $2 billion share buyback program.

It was quite a first week for the month, but the stories did not have much of an impact on the share price. Sirius XM shares closed the month of November at $2.77 and by the end of the first week in December, they had actually declined by a penny to $2.76. So, how was week 2? The shares drifted down, reaching an intra-day low of $2.68 on the December 14th ex-dividend date. Then, late in the afternoon, the Copyright Royalty Board released its decision on the SDARS music royalty rates. The proposed rates to be in effect for the five-year period beginning January 1, 2013, were well received by the market and the shares closed at $2.91, up nearly 7% on the day. One analyst, Jeffrey Wlodarczak of Pivotal Research Group

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As of May 13, 2022, ranked #95 out of 10,688 Bloggers (top 1%) by TipRanks and #392 out of 18,543 (top 2%) overall experts by TipRanks.com.https://www.tipranks.com/bloggers/crunching-numbersFocus is mostly on Sirius XM Holdings and income investing,  I have 30 years (through 2000) experience working for basic manufacturing and high tech industries in both the US and Europe. Company sizes ranged from start-ups to Fortune top 10. Experience as manager and/or grunt in fields of financial analysis, revenue forecasting, business planning, budgeting, pricing analysis, compensation planning, contracts, marketing and product management. Have been investing in stocks nearly 50 years, options for 30 years and on and off in real estate since 1981. Laid off when the dot-com bubble burst, and began investing full time.BS in engineering from Boston U, MBA in finance from Rutgers.

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