The way it looks now Malone can't buy enough cable. Not sure How any cable deal will effect SIRI. The RMT will happen when the time is right. My guess next summer/fall. Mean while expect SIRI to continue to do well. You got any of Malones other hot property STRZA. I'm killin that one and expect lots more.
Lets see if we get that late push. I always like happy hour.
You do get it wrong all the time
The deal has no effect on SIRI. But it will effect LMCA in a very positive way. It's clear Malone wants to lock up all the cable he can. And why not not? Cable is pushin out 5-7% FCF when you can lock up loans under 4% for 20-30 years. Malone is the true master in this type of world. It's lookin real good for LMCA
It could also be that Malone does not want Voda to buy on the cheap. You can be sure Malone will put together a creative deal if he wants it bad enought.
Don't bet against Malone.
Why. It's clear content is going to be king. STRZA has tons of that.
Yep. lots of good news comin this way.
A perfect example of the power of operating leverage is Sirius Satellite Radio ($SIRI). After their merger with $XMSR in 2008 their stock took a beating. This wasn’t so surprising. The company invested billions of dollars in launching satellites, hiring and developing exclusive content etc. that during the “great recession”, with the prospects of subscriber growth dwindling, the company felt the pain of all those fixed costs.
In came John Malone (via Liberty Media ($LMCA)) with what has to be one of the best investments of all time. $SIRI had $3.25B in debt, with almost $200M of that due on 2/17/09. A few days prior to the 17th, literally on the verge of bankruptcy, Liberty loaned the company $550M in exchange for shares convertible into 40% of the common stock. Within the year, $SIRI was able to refinance and repay the loan.
As the economy & revenues started to rebound, some serious operating leverage kicked in. With so few variable costs, almost all of the company’s new revenues from new subscribers and new advertising flowed straight down to the bottom line.
The company went from an adjusted EBITDA loss of $136M in 2008, and a low of $0.05 per share – that’s five cents – on 2/11/09, to an adjusted EBITDA gain of $920M in 2012. At a current $3.13 the stock is up a staggering 62x!
Malone bought more over time and now controls over 50% of the corporation. His original 40% – which had a theoretical negative cost (because the debt was paid back with interest) is worth an astonishing $8.2 Billion!
Now that’s some nice leverage! Less
Last year when the company began starting up a used car program it was a huge step in the right direction. Participating dealers would be able to offer consumers a three month promotional subscription when a satellite radio equipped used car is sold. This year the company is taking things a step further with “Service Lane”. Now qualifying consumers can get a two month promotional subscription when they bring their car in for service. Brilliant!
This is yet another proverbial net in the water that will allow SiriusXM to identify consumers that have satellite radio’s. Further it will allow the company to engage that audience and offer services and plans that might be attractive to the car owner.
There are two types of marketing. These are ”Push” and “Pull”. Push marketing is when a company is pushing out its product or service and engaging the consumer. Pull marketing is when the consumer is seeking out the product or service and is engaging the company. The challenges with a Pull strategy is that sometimes a consumer does not even realize that the product or service is something they may want. With the used car initiative SiriusXM is doing some pushing. The reward is potentially new subscribers, but more importantly having an understanding of who owns the satellite radio equipped car.
Kudos to SiriusXM. There is a great potential that the “Service Lane” could become the “Fast Lane” for growth.
I would think STRZA will get takin out in the next 12 months.
Hard to find any news on this one.
A perfect example of the power of operating leverage is Sirius Satellite Radio ($SIRI). After their merger with $XMSR in 2008 their stock took a beating. This wasn’t so surprising. The company invested billions of dollars in launching satellites, hiring and developing exclusive content etc. that during the “great recession”, with the prospects of subscriber growth dwindling, the company felt the pain of all those fixed costs.
In came John Malone (via Liberty Media ($LMCA)) with what has to be one of the best investments of all time. $SIRI had $3.25B in debt, with almost $200M of that due on 2/17/09. A few days prior to the 17th, literally on the verge of bankruptcy, Liberty loaned the company $550M in exchange for shares convertible into 40% of the common stock. Within the year, $SIRI was able to refinance and repay the loan.
As the economy & revenues started to rebound, some serious operating leverage kicked in. With so few variable costs, almost all of the company’s new revenues from new subscribers and new advertising flowed straight down to the bottom line.
The company went from an adjusted EBITDA loss of $136M in 2008, and a low of $0.05 per share – that’s five cents – on 2/11/09, to an adjusted EBITDA gain of $920M in 2012. At a current $3.13 the stock is up a staggering 62x!
Malone bought more over time and now controls over 50% of the corporation. His original 40% – which had a theoretical negative cost (because the debt was paid back with interest) is worth an astonishing $8.2 Billion!
Now that’s some nice leverage! LessA perfect example of the power of operating leverage is Sirius Satellite Radio ($SIRI). After their merger with $XMSR in 2008 their stock took a beating. This wasn’t so surprising. The company invested billions of dollars in launching satellites, hiring and developing exclusive content etc. that during the “great recession”, with the prospects of subscriber growth dwindling, the company felt the pain of all those fixed costs.
In came J
George don't kown if we hit 5 this year but expect uptrend to continue. I've been long Malone for 20 years. I'm a VERY VERY happy camper.
Good sign
Kasie I owned some DTV before Liberty took it from Murdock. Has more that doubled since! The big issue with the SIRI stock price is the very very large float. A lot of big funds can't invest in stocks under 5. Also Liberty does not like low priced stocks to begin with. They like stocks with a much smaller float and stocks with super voting shares. What the RMT will do is cut the float big time and raise the price. It's like a reverse split but without the bad press. I plan to stay long in both positions let Malone do his magic. In the 20 years i'll been on board that has worked out great. In Malone we trust
I'm with Mel
Be careful what you wish for
Very sweet indeed