By Brandon Matthews
As Sirius XM (SIRI) shares rise in pre-market trading, all eyes today will be on the automotive sector, in which early estimates are beginning to trickle in. Early news reports seem to heavily favor those manufacturers that have the best Satellite Radio penetration rates among the OEM’s.
Bloomberg indicates that the major US automakers have outperformed their peer group last month. If validated, this should bode well for shares of Sirius XM throughout the day. Estimates have already increased the annual run rate to over 10 million without published data. The cash for clunkers program which was put into law earlier this week should provide further support as the year progresses.
In the second quarter, Sirius XM had announced several certified pre-owned program launches as well, including BMW and Volkswagon. BMW is expected to become the most popular luxury car in the US based on last months sales, taking the top spot from Lexus. Mercedes is reported to have shifted to a preactivated format as well.
Also of note is the fact that Sirius XM had renegotiated its contract with General Motors. As of this moment no details of that deal were released except for a comment from Sirius XM management that it was now much more beneficial to Sirius XM and its shareholders.
Satwaves will provide detailed analysis of course as soon as the OEM data is compiled and confirmed.
Position: Long SIRI
thankyou
Thanks Brandon. Also, Hertz has a great Sirius/XM program. I hope the train is finally leaving the station!
I just hope we hit $1 before any reverse split!
I think Mel needs to show the common share holders he is worth the $1,500,000 pay,and 120,000,000 stock options he is giving himself for 2010 and beyound. A reverse split will not hurt him at all. good old mel ,looking out for himself ,as usual. The train is going in reverse for the people who really own this company, the common shareholder.
@Big Bob
Reverse? Hahahahahahahaha…..