Replies to post #38968 on InterDigital Inc (IDCC)

[GE_Jim]

Mack,
"have you guys had a chance to look at the Sat Radio (SDARS) industry yet and its two main players (XM and SIRI)? Would really appreciate your opinions"


I haven't. Always looking for new ones however. Should have some time this weekend. If I find something interesting in there, well there your picks I share what I get.

Fair enough?

[GE_Jim]

OT Mack ,

Been an interesting week to be sure.

Getting back to you on XMSR and SIRI.

Didn't go to far here before I hit a snag.

XMSR. Oh BTW I'm using S&P reporting figures. If they are wrong please correct me.

Before I worry about breakdown of any company I look at the books to see if it floats. XMSR as of 3/3/2003 is 466 million in debt. LTD vs. is 41%. 63 million in interest payments alone in 2002. That frankly stops me cold. Their cash dropped 150 million and assets dropped 170 million from 2001 to 2002.I think that's even worse. The debt load remained the same 413 Million. At the end of 2002. Or in other words their current interest payments are 3 times what their revenue is. Forgetting the debt, hard to do, they would still need to grow sales 15 time's current level just to break even, again forgetting the debt already in place. Things do change, cost can be cut, but currently I would have no interest in this one.


Siri, Well at the end of 2002 they had 670 million in debt. 18 million in cash. and 106 million in interest payments for 2002.

That's a lot of debt. They are currently losing ground at the rate of 100 million a year. Again this is one I would past on.

JMO but there are safer investments out there. FWIW