Sirius XM Holdings Inc (SIRI)

[CashMoneyMillions]

Something positive after the selloff.....


Ahead of the Bell: Sirius, XM Satellite
Thursday January 18, 9:03 am ET
Sirius, XM Satellite Merger Still Possible Despite FCC Chairman Comments, Analysts Say

NEW YORK (AP) -- Analysts on Thursday said investors overreacted to comments from a regulatory official on the possibility of a merger between satellite radio operators Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

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Ahead of the bell, shares of Sirius added a penny at $3.87 in premarket trading, and XM Satellite was unchanged from Wednesday's close of $15.45.

On Wednesday, shares of both rivals fell after the chairman of the Federal Communications Commission noted rules forbid a merger between two holders of broadcast licenses. Shares of both companies recently rallied on rumors of a potential merger, which could result in significant cost savings.

Bear Stearns analyst Robert S. Peck in a client note lifted his rating on Sirius to "Peer Perform" from "Underperform," saying he thinks merger speculation will likely continue to boost shares.

Peck said the sell-off was overdone, since Chairman Kevin Martin was simply acknowledging already existing information, not sharing an opinion on a potential merger. Citigroup analyst Eileen Furukawa had similar comments in a separate client note.

"In our view, Chairman Martin was simply reiterating a widely known fact, and not necessarily indicating which way he would lean should a merger ever be attempted," wrote Furukawa. She has Furukawa has a "Buy" ratings on both XM Satellite and Sirius.

However, both analysts acknowledged that regulatory issues would need to be overcome if there is merger.

"We underscore there are significant hurdles for Sirius and XM to overcome should they pursue a merger," wrote Peck. "However, we believe the short term movement of Sirius' stock price will be more impacted by the mere pursuit of a merger, should they attempt one."