By Brandon Matthews
As the bullish catapult formation confirms itself today, my attention has again turned to analyst recommendations. It has struck me as odd that no recent equity upgrades have been announced, despite the fact that Standard & Poors last week upgraded Sirius XM Radio’s debt rating. As it turns out, last week Reuters upgraded shares of SIRI from neutral to outperform based mostly on technical factors. Schwab likewise upgraded the equity to outperform on the 14th. I had been expecting an upgrade from S&P’s Tuna Amobi following the Satellite Radio provider’s outstanding second quarter results, which have now resulted in Sirius XM shares annihilating the analyst’s .50 price target as the stock is currently trading above .61 with no signs of slowing down.
Today, Jaywalk updated its report on Sirius XM Radio. The report is a summarized consensus based on multiple research analysts. The report reveals that as of July 31,2009 that there were 7 sell ratings out of 18 analysts that provided research on Sirius XM Radio. As of today, that number has dropped to just 3, as 4 of the research providers have upgraded Sirius XM Radio to Hold from Sell and Strong Sell ratings. 2 of the most bearish analyst’s which had strong sell ratings on the equity upgraded Sirius XM shares 2 notches to Hold in just the last three weeks.
As institutions continue to acquire more and more shares, it is likely that more rating increases will be forthcoming.
The Jaywalk Consensus (SM) metrics service provides an average of all of the independent research providers’ ratings on the given security. By averaging these ratings, investors are given insight into the independent research community’s perspective on individual securities. The research providers who participate in the Jaywalk Consensus (SM) are professional firms that attest to having no investment banking or other potential conflicts that might impact the integrity of their research.
Position: Long SIRI
LOL. “Stealth Upgrades”. Gotta love it. Only with Sirius. They are truly the Rodney Dangerfield of stocks.
There is going to be A LOT of crow eaten after the 3Q blows everyone away.
Although I am sure the bashers will keep bashing regardless.
Fine by me. I like being the underdog. The smart shorts covered. Let the rest get buried by their own arrogance…or rather ignorance. It’ll only help create that much bigger of a short squeeze once these knuckle heads wake up. By then of course it’ll be too late.
I’ve never felt better about this stock than I do right now. Virtually no downside and TREMENDOUS upside.
Bought 100,000 shares at .09 who’s laughing now.
Since Demian Russian called it right on in February this six month period has literally doubled my money and my confidence in legitimate independent reporting!
SIRI continues to trade from dominant strength, leaving the holders of massive short positions (in excess of 100 million shares over the last few weeks) now licking their wounds and chasing to catch a speeding train. The upside break of .60 today is another significant event in terms of reinforcing the strength that prevails – as this convincingly broke a trendline of resistance that had tracked declines since December ‘07. While some backing and filling should be expected in this region over the near term, to consolidate advances along the way – technical projections indicate substantial further upside lies ahead in coming weeks and months. This suggests support should remain solid on any near term pullbacks and legitimate investors are still buying in at current levels, as opposed to taking mild trading profits of pennies from the gains of the last few weeks. Day traders think in terms of pennies – institutional investors are now thinking in terms of swinging for the fences with SIRI viewed as a “steal” at prices well below 1.00. These institutional holders are not likely to be getting out of long positions that now show such promise and shorts are likely to remain aggressive buyers on any dips through this period of consolidation. Potential remains indicated toward .75 around the time of the 3rd Qtr. release in November, and 1.00+ over the next six months to one year. Longer term potential is projected toward 3.00 to 3.50, representing a 50% retracement of the declines of the last 5 years. All technical formations – short term to longer term) are now showing strength in conjunction with the improving fundamentals of Sirius XM. It should not be too long before analyst recommendations turn more positive as a result – as analysts usually follow the lead of the markets!
RAF wonder review and analysis, concise and to the point. Hopefully we will get to one dollar by the end of the third quarter, and Sirius is a “steal” at sixty cents
If the August 26th event turns out to be a killer event and the stock continues it’s run up…I hope Mel keeps the good news coming right up until the 3Q where he hits it out of the park.
If we can keep this momentum going, there is no doubt in my mind that we can’t get to $1 by then.
Once we get over a buck…more and more money is going to start flowing into the equity.
Good times ahead.
Please note Typo in my comments above: The trendline of declines mentioned in the 6th line down started in December ‘05 from a price of 8.00. Typo reads December ‘07 – should read December ‘05.
hmmmmm this could Easley hit a dollar at any time. And it could lose .10 on opening and pop back to over .60 with this stock, it’s so weird
Brandon, Another excellent article. It is so nice for us “Longs”, to be seeing this unfold right before our eyes. It’s nice to witness several days of gains, in a row versus what we are normally, all too familiar with. The best is yet to come!
SkyDock….how appropriate is that!
Mel is in at $6.00 a share,out of pocket, he cannot sleep until he gets his money back and more.
It cost him over $40 million dollars.
Look for a merger soon.
Google perhaps.
Mel will not sell for no less than double digits so we are looking at $10.00 a share at least.
An investor since 1998 and clearly in the RED on SIRI I would like to think I’m the expert on this stock. I’ve been investing and following SIRI for 10 years and finally I can see that the subscriber growth is growing as well as revenue. In the not so far future it’s obvious to me that this stock is positioned to grow it’s postion because of its premium product. As a subscriber and investor I can’t live without this product for the low low price of about $150/per year. What an absolute deal considering the content and Sirius/XMSR music is comercial free. The value in this stock is inexplicable to the casual terrestial radio listener unless they tried the FREE service. It’s a no brainer. Right now there are about 18 mil subscribers. With the new equipment and holiday season approaching, cash for clunkers, etc., it’s hard to see this stock declining. Whoever sells their position in this equity is a complete loser…………..Siriusstv