Topic: How To Invest

Do you recommend Sirius XM Radio? Thank you.

Article Excerpt

Sirius XM Radio, $1.71, symbol SIRI on Nasdaq (Shares outstanding: 6.8 billion; Market cap: $7.0 billion; www.siriusxm.com), broadcasts by satellite about 135 satellite radio stations in North America. Around half are commercial-free music stations. The company offers a wide variety of music channels, including rock, pop, heavy metal, hip-hop, country, dance, jazz, Latin and classical. Sirius also has sports, news, talk, entertainment, traffic and weather channels. Subscription fees supply about 86% of the company’s revenue. Right now, almost all of that revenue comes from car-radio listeners. Sirius also provides music and other programming that users can access through mobile phones and the Internet. Advertising fees supply about 2% of Sirius’ total revenue. Besides music, Sirius sells radios and accessories for cars, trucks, homes and offices. It mainly sells its radios through automakers, electronics stores and car-radio dealers. It also sells its products through its web site. On June 30, 2011, Sirius had 21.0 million subscribers, up 7.6% from a year ago…