By Brandon Matthews
A new research report was issued yesterday by ConvergEx on shares of Sirius XM Radio (SIRI), which publishes a monthly “Jaywalk Concensus” report on thousands of individual equities. ConvergEx clients include asset managers, broker-dealers, corporations, financial intermediaries, hedge funds and retirement plan sponsors. Jaywalk is the independent equity research consultancy of ConvergEx.
“The Jaywalk Consensus 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.”‘
The new report on SIRI is a consensus of 14 independent research providers (IRP’s), down from the 15 IRP’s that weighed in on Sirius XM Radio shares last month. Although we can see that one IRP in particular has upgraded SIRI from neutral to buy, the data would seem to indicate a trend in which the most bearish analysts have walked away from SIRI as a bearish bet. As these recommendations are made primarily for the benefit of institutional investors including hedge funds, this could be advantageous for those long Sirius XM Radio shares. Although these IRP’s in this case fell short of upgrading the stock, not making further sell recommendations is likely to result in a net positive effect, regardless.
In a span of the last four months, 7 analysts have dropped coverage and all held bearish positions on the equity. In the wake of much improved results being reported by Sirius XM Radio, the number of IRP’s with very negative or strong sell ratings has dropped from 4 to zero. Those with negative or sell ratings have dropped from three to two, and one other which held a neutral or hold rating has fallen off as well.
Further information reveals that Sirius XM Radio shares are now the best ranked shares within its industry, which would suggest that SIRI is now the “best of breed” compared to other radio companies. Sector investors often use a “best of breed” philosophy when making investment decisions.
Position: Long SIRI
“best of Breed” bottom line!
yes…that was a shot at Cramer, if you’re wondering…
Good article Brandon.
So that’s 8 holds, 3 buys and 1 strong buy. It seems to me that these independent analysts have completely ignored the recomendations of the “independent thinkers” over at the Street.
Makes you wonder….
Brandon,
Great article and also a great show last night with Patrick Byrne.
Can you write a story about that information he provided last night. Jim Cramer and his partner at the TSCM David Rocker. Also what was interesting is Jim Cramer’s wife and her connection to hedge funds and other areas. Karen Backfisch is now divorced from Jim Cramer, yet when they were married Jim Cramer had language in his contract to allow her to trade. His new contract also allows her to continue trading even though they are divorced. Something is very wrong here.
Based on some research I found on the internet, there seems to be a somewhat Maffia type connection between the people Jim Cramer is assoicated with in business and marriage.
I hope you can write about this topic.
Richard Keane
Great story Brandon.I can’t wait until Ms.Palin signs on.That,plus increased car sales, expanding international markets, and an ever improving bottom line,points to a huge gain in stock valuation right around the corner.
Brandon,
Do you or any of your writers have any comment on the John Malone purchase of Wordspace satelite radio debt obligations? I’m not sure what he plans to do with the pieces of this company that he now owns but it is very interesting. Thanks in advance for you looking into this.
After the Fox interview, I don’t think Mel is interested in sharing ownership or the future direction of SIRIUS with Liberty Media or anyone else for that matter. I look for him extricate SIRIUS from the Liberty ownership at the earliest opportunity and he will use the now growing FCF to do it.
Best of breed is an understatement. Sirius is killing the rest of the breed off slowly. In 5 years, it will be in a breed of it’s own.
Complete domination of all audio broadcasting in the world’s largest economy.
Given the marked improvement in the performance of Sirius XM and growing evidence that the business plan is functioning well on all fronts, it is not surprising that this positive shift in analyst sentiments is beginning to show up. There is no doubt that further analyst and credit upgrades should be seen in the next few weeks and months – certainly into and through 2010. Sirius XM is definitely “the best of breed” in the radio industry and heading toward total dominance in future years.
Great information, Brandon. Thank you.
Excellent Brandon! The positive trend continues and will only get better! SIRIUS XM is truly “best of Breed” and the future has never looked brighter!
Great news, … It’s absolutely clear now that SIRIUS XM business model is working… In the most recent quarter they started generating FREE CASH FLOW which allows SIRIUS to buy back stock and continue to grow. I see an opportunity for SIRI to have solid gains of 50% or more in the coming weeks buy your shares now while they’re still cheap because SIRIUS is about to breakout again real soon…
Well Brandon. As usual you are right on the mark. All I can say is My seat is in the full upright position, my seatbelt is fastened and I am ready for takeoff. GO LONG SIRIUS!!!
That’s because you are either and idiot or one of his minions. If you believe that for one minute I’ve got some beach front property down here in the everglades I’ll let go real cheap.
Well done Brandon, Thank you!
thanks for the many great articles. wondering if you could address the customer service issues. I as well as many others have had horrible experiences w/ their customer service. Here you will find many reports of their awful service. If I were not an investor I would have cancelled all of my subs.
http://www.ripoffreport.com/Search/Company/Sirius-Satellite-Radio.aspx
When Brandon? So when can we expect to see this catapult into the mid .70’s or has something now developed that you weren’t aware of then changed everything. What a hack!