Title: Sirius Satellite Radio - Up and Away?

Posted by Author: mainid

Stock: SIRI (Get one year chart)

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Overall Member Money Tree Rating: 5 tree(s)

Date and time posted: 2011-05-12 09:35:25

Article text:

This is not a recommendation to buy or sell this stock, make sure to complete your own due diligence.

Since 2001 I have been an investor in satellite radio. At that time there were two companies in existence delivering satellite radio, XM and Sirius. Since that time, much has happened, a merger of the two, and of course the financial collapse in 2008 with a combined worry that GM may go out of existence. GM was a major driver of Satellite radio's growth. So with those two elements in play back in 2008, as Sirius headed into 2009, things looked bad. So bad in fact that the company nearly went bankrupt in February 2009 due to the lack of financial support for the then teetering on depression economy of the United States.

Sirius' stock price sank to a low of 7 cents, yes cents, a share. But being a long term investor in this company, I also knew that Sirius was on the verge of turning the corner in their business model and the company was about to hit the tipping point to being a viable going concern. While many others still debate this fact, obviously I was not the only one who saw the potential. Mel Karmazin, who if you have followed his career, does not like to lose. He managed to broker a deal with Liberty Media and obtain additional financing to keep Sirius alive in February 2009. All you have to do is check the stock link above for a one year chart and you will see the incredible run this company has had in only the last year.

Check out that stock price! If you had bought the stock on the day of the Liberty Media deal, it would have cost you 11 cents or so. As of May 12th, 2011 - Sirius has now traded as high as $2.42. If you do the math, you could have invested a very tiny amount of money and been very well rewarded for your risk.

In any case - below is an interview with Mel Karmazin, it is a bit dated from June 2010. Check it out below.

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