XM SATELLITE (XMSR)

[trade2much]

The old news of the solar degradation on the Sats gave us a good dip. The insurance claim which XM has in on the issue is being denied, and now the court fight insues. Bet it is 3 yrs+, what a pain for XM.
XM warned of this back likely scenario in the 1st qtr-2nd qtr of 02 when the issue first became public.
The new bird from Boeing is supposed to be free of the problem and be launched in 04 at a cost of 160 mil.

XM seems to be taking off nicely as a concept and the subs are climbing sb over 1.2 mil this yr..

Nation ad time is estimated to be worth $300 per minute so while XM may only have 6 mins per hour eventually of ad time on 60 channels 24/7 the math is phenominal 300 x 6 x 24 x 7 x 60 =$18,144,000 x 52=
$943,488,000 in potential ad revenues per year so be conservative and take 1/2 = 1/2 billion $ in ad revenue.

Then the total potential market of an estimated 48 million subs at 9.95 x 12= done by their original independent market study.

2-3 yrs should be great!

Good luck for now!