I just got online to see that SIRI had fallen over 5% today and Friday's gain was lost (and then some). I saw on Yahoo!Finance that over 95 Million shares traded hands today (more than double the average volume & about 7% of shares outstanding). What I take from this is that the crowd (or at least some of the crowd) that was waiting for a SIRI spike to dump their shares is now gone. Thats just my take, any other thoughts?Cap58
Sounds like a reasonable assumption barring any other news. Every high will probably have profit takers that have been sitting on their money too long.Me, I'm sitting on this for a while.Buffy (who wishes his other stocks were this relatively easy to follow...)
I expected this. I just keep telling myself LONG TERM, LONG TERM.
Lets say it together, "LONG TERM, LONG TERM, DON'T SELL ON A WHIM, LONG TERM"Cap58
<u><font size="7" color="#FF0000">LONG TERM!!!</font></u><'))><©2005Vic
Hmmm... guess you can't do colors or font sizes!! Bummar!!!so I'll say it again..L O N G T E R M ! ! !<'))><©2005Vic
This downgrade from Bernstein Research might be responsible for today's pullback:Highlights • We are downgrading Sirius Satellite Radio (SIRI) to market perform, based on absolute and relative valuation. We maintain our $8 target price. After a strong recent rally, we no longer believe the stock offers a sufficiently compelling upside case to merit an outperform rating, particularly in light of a dramatic relative value gap that has opened between SIRI and peer XMSR. • In the 32 trading days since XMSR reported 3Q earnings, Sirius has outperformed XM Satellite Radio by an astonishing 2,760 basis points. The disparity comes after a long history of very tight correlation between the two. • Based on an aggregate enterprise value, Sirius is now valued at $2.6B more than XMSR – a 26.3%premium – despite the fact that XMSR is roughly twice SIRI's size • We believe this valuation gap is untenable. Assuming similar discount rates, and similar profitability, the market is now discounting a scenario whereby Sirius will be 26% larger than XMSR by some indeterminate future date. We illustrate three separate scenarios to demonstrate that such an outcome is highly unlikely, at least the next seven years, given XM's dominant position in the OEM channel. • We're big believers in satellite radio in general, and in Sirius (and in Howard Stern) in particular. But there is limited remaining upside to our target, and the valuation gap between XM and Sirius is now untenably large. Until that gap has been closed – either by appreciation of XMSR or contraction of SIRI – we believe it is prudent for investors in the sector to redeploy capital in the sector from SIRI to XMSR.
And Jim Cramer Monday responds...."Commenting on Sirius Satellite Radio (SIRI:Nasdaq - commentary - research - Cramer's Take), Cramer said he is "absolutely adamant that the stock has more upside." Cramer said a downgrade Monday by Sanford Bernstein is par for the course, but he recommends holding the stock until closer to when Howard Stern makes his debut. Cramer would let Sirius' stock "cool" for a day or two, and then he would be a buyer."Chris (who is about to recite his nightly "Now I Lay Me Down to Sleep...")
I can see that Chris is trying to be like Buffy... ;-)<'))><©2005Vic (who doesn't want to be like Buffy or Chris.. tee hee!)
I can see that Chris is trying to be like Buffy... ;-)<'))><©2005Vic (who doesn't want to be like Buffy or Chris.. tee hee!)WhatEVER!There is only one me.Buffy (who is pretty sure that is all that is needed...)
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