Comments on: Sirius XM CEO Talks of Future Share Buybacks on Cavuto

By: Brad

Brad — Tue, 17 Nov 2009 15:50:51 +0000

The title of this article should have been: Sirius XM CEO talks of Future Acquisitions on Cavuto. Then you could go on to speculate that Sirius is going to buy Microsoft or someone. Because it’s just as plausible (in fact, he mentioned acquisitions first) as what you’re asserting above. Of course Mel mentioned acquisitions, share buy-backs, and debt paydown in the interview as those are basically the only things you do with cash. But you make it sound like its going to happen next quarter.

By: Magnum

Magnum — Tue, 17 Nov 2009 11:11:55 +0000

As allways, a great article that you have provided to us. U realy are a very good member to this company and it’s sherholders.

Thxs Brandon

By: Cartman 3:16

Cartman 3:16 — Tue, 17 Nov 2009 06:50:36 +0000

Love it.

By: hfamortgage

hfamortgage — Tue, 17 Nov 2009 04:45:20 +0000

The future looks bright for the company, and the stock is at .65-.66 cents. I am going to keep preaching how undervalued it is until it is not.

By: hfamortgage

hfamortgage — Tue, 17 Nov 2009 04:36:09 +0000

A few things that stuck out to me in the interview.

1) Mel is not going anywhere and that is how I like it as I wouldn’t want anyone else running this ship.
2) Mel advertised the lifetime subcription package. Not sure why he would advertise that as other plans would bring in more revenue in the long run. Strong subscriber base could be the goal here.
3) Content is KING, and Mel is willing to pay for it. I do believe Sirius XM will step up to the plate and give Howard a 10% raise to retain his services.
4) Sirius XM projects 60% penetration rate and 11-12M cars sold, which is in line with experts, in 2010.
5) Mel inherited a business model that didn’t work and an economic environment second only to the Great Depression. Now, Sirius XM has a business model that works and has fixed its balance sheet. Mel can focus on what he does best, which is run operations.
6) Focus is on revenue and not subscribers, as it should be. Investors want a profitable company.
7) 2.5 Billion dollars in trailing revenue
1 Billion dollars in savings since the merger
9) Mel sees an environment where AM, FM, and satellite can co-exist together.
10) Mel cannot be the #2 guy