Todor Pichurov

Sirius XM Radio, Inc. (NASDAQ:SIRI) With a Hopeful Outlook On Car Sales

by Todor Pichurov September 27, 2012
1SIRI_chart.pngSirius XM Radio, Inc. (NASDAQ:SIRI, SIRI message board) may be looking to some more cash pouring into its coffers as U.S. automobile sales are starting to stabilize and improve.

Automotive sales and pricing authority TrueCar announced its September sales and incentives predictions for car market movement. The forecast for September lists a 10.5% increase of new car sales on a year-over-year basis. Seasonally adjusted annual rates for new car sales are up 1.5 million units compared against 2011 and up 0.5 million against Aug 2012.

People at SIRI as well as investors are sure to be excited about the positive development as this means more potential customers of Sirius' subscription satellite radio service for use in cars. Nissan recently selected SIRI as the provider for various satellite-driven services in their autos such as accident reporting, stolen car tracking and distress signals for assistance.

Sirius is on the verge of acquisition by Liberty Media, John Malone's multimedia giant. Speculation about the future mandate of SIRI CEO Mel Karmazin under Liberty control has been circulating the Internet for some time. The possibility of a Sirius without Karmazin seems somewhat more likely, with Mr. Karmazin himself saying he doesn't expect to keep his office, as well as Liberty CEO Greg Maffei who voiced his opinion that Karmazin was not irreplaceable.

Meanwhile, SIRI is moving slowly into Internet integration and is trying to diversify its satellite model. The company is not quite there yet, with no personalized stations styled after what Pandora Media, Inc. (NYSE:P) is offering through its Internet radio service. The higher royalties payable for Internet streams compared to satellite broadcasting may be levelled by a bill adequately named the "Internet Radio Fairness Act" which is awaiting Senate approval.

Sirius have been doing well financially in the second quarter of 2012, with record-setting subscriber additions, the majority of whom are car radio customers. Over the last week SIRI stock has been comfortably gravitating around the $2.50 mark, closing at that exact price yesterday, after moving up $0.03.  


IMPORTANT SIRI UPDATE: September 27th 2012 - SIRI is making a chart pattern that has been seen 67 times since the year 2000.  58.21% of the stocks that have made this pattern went down over 13% on average in a 20 day period.  Watch the video to learn more about the probabilities of SIRI stock moving up or down.

SIRI Backtested Performance
                                                                                                 >>Click here to watch the video and learn more

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