2-Star Stocks Poised to Plunge: Sirius XM?
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 and see what CAPS investors are saying about the stock right now.
Sirius facts
Headquarters (Founded) | New York (1990) |
Market Cap | $14.7 billion |
Industry | Cable and satellite |
Trailing-12-Month Revenue | $3.3 billion |
Management | CEO Mel Karmazin (since 2004) |
Return on Capital (Average, Past 3 Years) | 10.3% |
Cash/Debt | $556.3 million / $2.4 billion |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 28% of the 789 All-Star members who have rated Sirius believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, latimerburned, succinctly summed up the Sirius bear case for our community:
Sirius has just never lived up to the enormous promise, and their merging with chief rival XM Radio has yet to deliver market stomping returns. Sure, the company has been on a tear of late, and their latest earnings report gave investors reason to hope. Still, the company is not cheap, just barely profitable, and they're going to be leaderless come next year.
Further, I don't think investors should overlook Apple. Not only are there rumors that they'll be rolling out a streaming service, but with a simple adaptor you can bypass the radio and create your own station. I've been using my iPhone to play my iTunes playlists through my car radio for years now. There are just too many reasons not to be tuned into Sirius, and I think investors should tune out as well.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article 2-Star Stocks Poised to Plunge: Sirius XM? originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
