October 22, 2010 | In: Services

Is SIRI Undervalued?

I had a chat with a friend yesterday, and he was telling me that almost every new (half-decent) car now comes with a Sirius satellite radio and a free year, that most people renew. I was thinking, probably this company is losing money at the moment, but it has a huge potential, providing its technology does not become obsolete with time, and no real competitors jump in the satellite radio bandwagon.

At the current price of $1.31, there is a possibility that this stock is largely undervalued in the medium run, but let’s wait and see. I personally think that Sirius need to change a substantial part of their vision, enter global markets with a firm feet, and not just restrict themselves to the fluctuating and the currently weak US market, also provide stations in local languages.

To be honest, even though people like this service, I don’t see the point or the advantage of having a satellite radio, but then again, I’m not a die hard Howard Sterns’ fan, and I’m sure I will never be…

4 Responses to Is SIRI Undervalued?

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SIRI Reaching a New 52 Week High « Fadi El-Eter

October 28th, 2010 at 11:21 pm

[...] is up almost 10 cents since I wrote about it a week ago, does that mean that people have started to recognize that this stock is way [...]

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SIRI Investors Should Thank Howard Stern, or Not « Fadi El-Eter

December 9th, 2010 at 5:37 pm

[...] was a funny stock a few months ago when I first examined it, but then I took another look and I found it’s undervalued, not because the satellite radio has Howard Stern, but because nearly every new car in North [...]

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The Difference Between Risky and Dangerous Stocks « Fadi El-Eter

January 25th, 2011 at 5:01 pm

[...] $1.50 (or even less) before rebounding. Anything below $1.40 is a strong buy, as SIRI at that price will be undervalued. I think the upper limit for SIRI, for this year, is $2.50. The stock shouldn’t go up more [...]

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Will Sirius Go Bankrupt? « Fadi El-Eter

August 20th, 2011 at 8:02 am

[...] changed in the fourth quarter of last year, and the stock broke the $1 barrier for good. I have even written favorably about Sirius, even after I made fun of the stock before. I even bought a few thousand shares myself and sold [...]

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