Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

>>"Analyst Kit Spring at Stifel, Nicolaus & Co. told clients in a recent note that Sirius shares should see a "continued rally" into the second half of 2005, helped by rising Chrysler and Ford auto sales, NFL-related subscriber additions, the run-up to Howard Stern's arrival at the company in January 2006 and a 2005 subscriber forecast that "seems too low" at 2.7 million. Spring's 2005 user estimate is pegged at 2.9 million."<<

But Orvis, isn't that the kind of talk that we heard from analyst at the top of the internet run in the late 90's. Indeed the stock could run but I merely want to report the flip side of the argument. SIRI reports before market open tomorrow. These guys are still having to give away a bunch to sign up subscribers as XMSR charges 12.95 per month but showed only less than $10 per subscriber for the whole quarter. I would think that SIRI would be in the same position. I would have to think that smart money is looking ahead to the increase in overhead that SIRI will have with Stern and the NFL. However, as long as SIRI remains a story stock selling sub $10 it will remain attractive to the uninformed investors. One can play that game but one aslo needs to be aware that this one could get cut in half in a heart beat.

I wonder... how is SIRI going to get the funds to make it to profitability. In my opinion, the only way for SIRI to survive would be to be bought by XMSR. JMO>