In the last decade the company only saw long term rowth in the year 2005 most notably due to a merger with XM Most notable factors Analyzed from the 2013 report: ITEM IA. RISK FACTORS Competition: “Out of 250 million cars on the road, those with satellite radios will reach a target Of more than 100 million in 2017. Currently, this number stands at only 57 million cars. This shows the percentage of cars with satellite radios will increase from 23% to 40%. A rather uplifting quote from their Annual Report, but with more analysis proves to be rather insignificant due to all the complications they have with competition. A direct quote from their 10k Filing, “Apple, Pandora and Clear Channel, make high fidelity digital streams available through the Internet for free or, in some cases, for a fraction of the cost of a satellite radio subscription. These services compete directly with our services, at home, in the automobile, and wherever audio entertainment is consumed. The list goes on and on discussing traditional AM/FM radio (that generates billions of dollars in advertising), third party media sources and various other radio methods ITEM 6. SELECTED FINANCIAL DATA When analyzing the basic reporting’s of profit, total assets, paid dividends and ther various indications of growth, it is evident that this company is heading in no clear direction for long-term growth. While revenue grows at a miniscule steady rate, profits show no indication of life.
Shareholders have seen only one paid dividend in the last half decade. The numbers only indicate s sign of life at this point ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TO make matters worse, there iS no effort develop an original idea or modify the current business plan according to said section. Sirius differentiates from its competitors by having live content broadcaster, while the competition offers personalized music offerings.
While think there definitely are drivers who have a craving for Howard Stern, live sports coverage and sizzling political talk shows, this audience is not enough to power the company in the long run. Despite its horrendous long-term capabilities, SIRI remains a hot short-term trading stock due to its low price and rapid fluctuation (see graph above). Since the company thrives on its subscribers, investors who can infer on certain trends usually caused by the news are more than capable of profiting.
SIRI trades about 100% more volatile than the market and is plagued with emotional traders that overreact to every ounce of news that most likely has no effect to the company itself Final Words: While I don t think the company should have room in investors retirement portfolio; its low price and fluctuation will keep this stock highly traded. The company’s value is fully stimulated by the number of subscribers they have to their product.