Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 8
The Fool is becoming more and more predictable. I hope and wish the SEC seriously starts investigating the alleged front running of Motley Fool management with regards to XM and SIRI. I wrote back to Seth as follows and wanted to share my comments with you all...

Stop being so delirious! The figures you just put up on the Fool web site regarding Sirius is a fact known to most of the investors, at least to those who do their DD. What you did not put up on the table is comparative figures for XMSR so as to cover the entire industry! Read my messages on XMSR board for the comparison. And to tell the truth I don't see much difference among the two stocks, except that XM has a lead of 1 mm subscribers b'coz it had an early start. Does that mean that the stock is superior? I don't think so! Coz SIRI has better content, better quality satellites, no commercials and has NFL too! It is expected to cover the gap in subscriber base sooner rather than later. You called XMSR "a leader in the industry" due to its lead of 1 million subscribers. However, most stock valuations are based on forward projections. You did not even touch that subject of valuation at all. Just typical of comments on XMSR and SIRI on the Fool. When it comes to defend XM, they go quite like a dumb monkey. When it comes to SIRI, they start babbling whatever comes to their mouth without any forethought. Example, you mentioned SIRI's mkt. cap, but have you looked at XMSR's mkt. cap, fool? Its $4.1 B compared to SIRI's $3.5 B. Even if XMSR has 1 mm additional subscribers, this translates into $100 mm of justified difference in mkt. caps of the two companies. Moreover, have you looked at the debt (plus contingencies) to mkt value of equity ratio on SIRI and compared it to XMSR's? No?

XMSR's debt plus contingencies easily runs into $1.5 B whereas SIRI's is just $0.35 B (including the NFL deal). Hence, the debt to mkt. value of equity ratio on XMSR is almost 37% compared to SIRI's 9%. You plainly overlooked this major difference while comparing mkt. caps, didn't you? Or maybe you deliberately overlooked this fact.

You also mentioned SAC for SIRI is around $12 for per dollar of revenue. Did you dig deeper into SIRI's SAC costs, fool? No! Thats not what you are paid for, is it? You just write what you are told to without any research or independent analysis. SIRI's SAC costs is much more encompassing than that of XMSR, which under reports its real SAC cost. Do some DD before writing delirious articles on the fool...
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.