By Brandon Matthews
Shares of Sirius XM Radio (NASDAQ:SIRI) continue their winning streak today on the heels of an S&P credit upgrade. The latest upgrade followed new coverage by Lazard Capital and Wunderlich Securities, each of which assigned a BUY rating to Sirius XM shares and an initial price target of $1.00. Shares of Sirius XM have traded as high as .81 today, setting a new 52 week high on current fundamental performance rather than historical lows. As the stock continues to strengthen, short interest continues to plummet to historical company lows.
As Jim Goss of Barrington Research noted in last night’s Satwaves Radio interview, analysts are turning their attention to Sirius XM Radio once again, which validates the positions of analysts such as Goss. Independently, these analysts are all reaching similar conclusions which strengthens the bullish argument being made regarding Sirius XM.
As the eighty cent wall is breached, investors are setting their sights on the magical one dollar mark, which could conceivably prevent Sirius XM from performing a reverse stock split and re-qualify for this year’s Russell rebalancing, if it were to surpass and hold above that level.
As more and more Wall Street eyes are taking note of Sirius XM’s improving fundamentals, there remain two analysts that investors are anticipating might resume coverage of Sirius XM in the not too distant future. I’m referring of course to Mark Wienkes of Goldman Sachs and Bank of America/Merrill Lynch’s Jessica Reif Cohen. Positive resumption and comments from either of these respected media analysts could conceivably catapult shares of Sirius XM to much more respectable levels.
In the meantime, shares of Sirius XM Radio seem to be a port in a storm, as the equity is trading up nearly 7 1/2% today as the major market indices continue to lose ground.
Position: Long SIRI
Breaching the 52 wk high should not be taken lightly.
is mark still at Goldmen? Also i think the next big one will be JPM
Does SIRI keep Stern or let him go?
The real question is what is he worth now?
Did you just call Mark Wienkes a respected media analyst??? Please tell me you didn’t write that.
You really must get these thoughts out of thin air.
just buttering him up…
Thats fine. But to put Jessica who is basically thought of as Legend on the street in the same sentence with that guy? Come on man!
I think there is one person on this planet who thinks more highly of Mel than I do – And that’s Jessica. But where is the freakin coverage by Merrill???
Brandon,
The catapult effect that you wrote about is coming on strong. I think that when the stock breaches the $1.00 wall, it will not stay at that level very long before momentum carries it to the $1.25 level….
IMHO….
I wonder, assuming SIRI continues its upward stock price, if analysts will review it soon as a hold or if they will upgrade it from their $1 target price (which seems the price they all conveniently agree on) to a higher price – either on momentum or company fundamentals.
Anyone have any opinions on this?
FINALLY!!!! After 4 Years (avg), I’m in the Green! (at least for today…SP = .81)
Again timely reporting Brandon!! And, even a positive note about breaching $1.00 and maybe
?? not necessary and even relisting on the Russel!
Long SXM
go to a meeting…come home…broke 80 !!!
…I should go to meetings everday.
now to get people to hold on to their shares !!!
Wasn’t Weinkes let go by GS over a year ago?
No…GS just stopped covering SXM…Weinkes still works at GS
I’m still waiting on Tuna Amobi and the S&P to raise their rating. I’ll be shocked if it doesn’t come in the next week.
Great work Brandon,
the catapult to dollar is happening like you stated in your charts.
I would love to see Mel and other insiders including Howard Stern buy atleast million shares each at this time to convince the investors on the sidelines to start buying.
Yeah, I could have sworn Wienkes got a pink slip. Possibly someone else at GS will initiate. I’m hoping Cohen jumps back somewhere between here and $1.
http://biz.yahoo.com/a/1/158582.html
why no news from the RBC meeting Tuesday?
any idea what came from the meet???
As much as Weinkes scares me…I have to admit he was the only one consistently right on the long descent down…so if GS resumes coverage and he makes it POSITIVE that would be a HUGE boost to the sp putting us over a $1.00 easily…IMPO
Mel is in an an average share price of $6.00 a share with over $40 million dollars invested out of pocket.
What does that tell you,,,,,,,
Massive upside coming……….
SIRI up to .85 Premarket. Good times…
Brandon, If we go over $1.00 organically and stay there, we could re-qualify for this year’s Russel re balancing…that would be great news. Maybe even some institutions will be buying? So, good things can happen without an RS?