2-Star Stocks Poised to Plunge: Sirius XM?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, satellite radio services specialist Sirius XM Radio (NAS: SIRI) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Sirius XM's business and see what CAPS investors are saying about the stock right now.

Sirius XMfacts

Headquarters (founded)New York (1990)
Market Cap$6.9 billion
IndustryCable and satellite
Trailing-12-Month Revenue$3.1 billion
ManagementCEO Mel Karmazin (since 2004)
Chief Content Officer (since 2004)
Return on Capital (average, past 3 years)9.4%
Cash/Debt$746.6 million / $3.0 billion
CompetitorsApple
Pandora Media
Westwood One

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 18% of the 5,444 members who have rated Sirius XM believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, All-Star MintCoin, brought a specific competitive threat to our community's attention:

Long term this is probably one of the next companies that will lose big when Apple rolls over its turf. Apple does music better (much better) than anyone. What happens when they integrate [Siri voice command] into the steering wheel and give cult users direct access to their docked iphone via voice, which will include the Pandora service? One of those things is they will no longer need to pay monthly for a music service from [Sirius XM].

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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