As of the end of February, Sirius XM had managed eight consecutive sessions of finishing above $1. Though its revenue and margins had improved, the company"s business had become largely dependent on the car industry. New vehicle sales were declining, which had a negative impact on its profits. In September 2009, Sirius XM received a warning letter from Nasdaq. Earlier this week, JPMorgan analyst Sebastiano Petti downgraded the stock, citing the company"s slowing growth in the auto industry. He also warned that rising capital expenditures could put the company in jeopardy in the near-term.
If you"re looking for a company that can generate substantial free cash flow, there are few better options than Sirius XM. With more than 150 million shares outstanding, the company"s stock is one of the most traded on the Nasdaq Global Select Market. It also pays an annual fee of $99,500 for continued listing. Although it is possible for the company to be dropped from the select market, it"s highly unlikely.
While Sirius XM Holdings was down 4% in the first quarter of the year, the company grew its self-pay subscriber base by 15%, the biggest organic uptick in more than a decade. At the end of June, the company had 31.4 million self-pay subscribers. However, the company had only limited details about its recent acquisition of Connected Vehicle Services from Agero.
Since the acquisition, the company has announced a series of smart partnerships with podcasts and celebrities. And it"s still planning to increase its market share. This is a good time to buy the company"s shares. They"re down nearly 52% from their high in May, but if you"re a fan of the company, the recent recovery may be a sign that things will get better.
After a tough year, the company"s share price is up 11% in the past week. That"s in part because of the company"s Q3 earnings. Even though Q3 was not expected to be strong, the company beat estimates. The company also unveiled a new product line called CrossXM.
If the company is able to meet its target, analysts will likely raise their recommendations. One analyst has a neutral rating, but David Joyce has a $1.25 target. Others are betting on a reverse split to help make the company"s stock more appealing. There"s no guarantee that a reverse split will be approved, but it seems like a safer bet than a drop in the company"s stock price.
Even if it does not get a reverse split, Sirius XM has a chance to get back to positive territory in 2014. Although it"s been a rough two years, the company"s management team has been trying to rein in expectations.
MACD technical analysis
Foreign exchange investment success trilogy mindset is the most important
Foreign exchange EA uncovered foreign exchange intelligent trading technology in the end is not reliable
Foreign exchange investment finance foreign exchange investment seven iron laws
What kind of conditions do you need to have to make money speculating in foreign exchange
Foreign exchange investment must read
Cost parity theory