Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

>>The cable industry took 30 years to achieve that kind of penetration.<<

I think the model you are talking about is farther away than 5 years for SIRI to see gross profits of 33%. You mentioned "fixed" cost. It's hard to peg "fixed cost" when they sign someone like Stern for $100 mil a year. "Fixed" cost just took a giant leap. I don't see all this resolving itself to a point where the SIRI business model has matured to point of seeing "net" profits higher than 7%. I would only give in to a argument of maybe 10% in five years. I see SIRI taking on more debt to get there and the interest expense alone will rise a chunk.