Sirius Makes A Comeback

After trading between $0.50 and $0.70 for quite a while, Sirius XM Radio (SIRI) has broken out in recent days and is now trading near the $1 mark.  Since December 22nd, the stock is up 65%.  This big move up coincides with the resurgence of Ford (F) and the auto industry as a whole since the radios typically come pre-installed in new cars with a free trial subscription.

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Comments

[Charles Phythian]

Bespoke Investment Group--
After reviewing your somewhat strange post regarding the comeback of Sirius XM and in connection to F and the auto industry, I have some feedback for you. Your group clearly is not a serious follower of the trials and triumph of SIRIUS XM [NASDAQ: SIRI] SATELITE RADIO, or you would have had more to say on that. In the Seeking Alpha boards where your blog post was listed as an independent article--we seek to diseminate quality information and articles at the grassroots level for other retail investors who are attempting to navigate the investment world themselves. We appreciate any press which sheds light on the under-valued SIRIUS XM, as we feel strongly that our company here is one of the last few grossly-undervalued holdouts remaining after the recent rout. However, your mentioning the recent share price break-outs with the SIRI stock in conection to the recent upturn in Ford Motor Co. [NYSE: F] is tenuous at best.

Here are some Automobile and Motorcycle manufacturers who also offer XM satelite radio pre-installed in their current new vehicle offering lineups:

Maker No. of Models Offering Pre-Installed XM Sat Radio
Acura 5
Buick 3
Cadillac 11
Chevrolet 15
GMC 10
Honda 8
Hummer 3
Hyundai 11
Infiniti 5
Isuzu 1
Lexus 10
Lotus 1
Nissan 15
Pontiac 6
Porsche 5
Saab 4
Saturn 4
Scion 3
Subaru 5
Suzuki 3
Toyota 14
Harley Davidson 24
Kawasaki 1
Ferrari 1

Now, bear in mind that these are all NON-Ford vehicle models and that these are all XM radios. Sirius and XM are all one big, rapidly-growing, newly-profitable company, but the long standing deal with Ford and Sirius aside, many other makers, including Mercedez-Benz and others offer satelite radio pre-installed in new vehicles from the factory.

All XM radios come with a complimetary 3-month trial subscription to the best of XM and the Best of Sirius. Conversion rates are about 50% and growing. The tipping point, the critical mass flash-point has arrived. Free cash flow begins here. And we are all very excited about the future of increased free cash flow and expansion of our technology platforms. Although Ford Motors is undisputably the winner of the American Auto Wars and will be highly profitable moving forward based on company innovations, financial positioning and the overall brilliance of CEO Alan Mulaly, the success of Ford and the global dominance of Sirius XM satelite radio are truly independent of one another.

We would appreciate ANY research or commentary on SIRI, but the facts of your article, although true; are irrelevant to one another.