Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

70%! They will never have a net profit margin of 70%. Competition will drive down margins if the model gets that high. We are also talking about 5 years out. I can not see how they go from losses of 8+ times revenues to 70% net profit margins. 25,000 subscribers deactivated last quarter that's up from just 5,000 last year. Let's face it, many subscribers are given incentives to stay on a year. IT cost SIRI $229 to acquire each subscriber last quarter. Deactivations grew by 485% while new subscribers grew by 417%. I bet the numbers increase as more subscribers come off their first year promo period. To keep them SIRI will eventually need to lower prices or give other incentives. My 7% net profit margin has a strong basis. The 70% you came from had to be pulled from your.....to my knowledge, SIRI has never indicated that 70% net profit margins were targeted.