Sirius XM Holdings Inc (SIRI)

[shinkdew]

What good news? The earnings were basically worthless. They had already released partial earnings, and they are basically a different company now. The call was mostly positive, but there was nothing that would make the stock rise. I thought there were a couple of negatives from the call:

1. Depending on the credit markets, the debt maturing in 2009 could cause a big problem (either obscene interest rates or not being able to refinance).

2. They don't expect automakers to install interoperable receivers for three years.

3. To get the a la carte offering, you will need to buy a new receiver. I'm pretty sure this was already known, but with the economy the way it is, I don't see people stampeding to the store to buy them.

All of that coupled with the declining auto sales (which I thought Mel did an excellent job trying to explain away) doesn't paint a pretty picture at least short term.