Sunday, May 07, 2006

Is it a good time to buy Sirius Satelite Radio

I already own about 200 shares of Sirius Satelite Radio (SIRI) and I am thinking I should buy more. Sirius released their first quarter earnings last week and although their losses had almost doubled their subscriptions beat expectations. It was the second quarter in a row that Sirius had beat XM in subscriber growth. I am well aware that Sirius has all kinds of costs mostly related to Howard Stern's contract but, for whatever reason, people love the guy and are willing to pay $13 a month to listen to him rant and rave. The kicker for me is that come June Sirius expects to have the capability to listen to the Howard Stern Show via the internet. I have a feeling that the ability to listen to Howard at work on your computer is going to appeal to a ton of people and even persuade some of the people who are on the fence to sign up Sirius. I am also wondering if the crazy amount of traffic to Sirius's website would also create another revenue channel since they could put ads on the website, something they can not do on thier satelite radio stations.

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