Sirius XM Called Best Investment Play…

In an article that could have been written by Sirius XM CEO Mel Karmazin, CNN Money has labeled the satellite company “the best investment play on an American recovery.  Sirius XM is more leveraged to a recovery in the U.S. car market than pretty much any car or parts company.”  High praise indeed but it must be measured by U.S. car sales that weren’t strong enough to compensate for scrapped cars and population growth.  This despite a strong June.  Of course it may not be entirely healthy for Sirius to be so closely married to car sales but that’s their bread and butter.  Nearly all of the $2.4 billion in sales Sirius XM should total this year will come from car owners…

CNN Money also cautions that investors in Sirius XM have been stung before when the auto industry took a dump and the company had to be bailed out by sugar daddy John Malone.  But that infusion of cash removed any possibility of default by Sirius XM and the $263 million of debt matures by the end of next year, which looks manageable.  Looking ahead, a turnaround in U.S. auto sales “could increase Sirius XM’s 19 million subscribers by 15% per annum over the next ten years to 75 million in ten years’ time.”  According to CNN Money, “it’s achievable.”  Putting things into perspective, Sirius XM would be in “less than a third of all vehicles.  In contrast, more than 80% of all homes have pay TV.”…

Like pay TV, you pay for the privilege.  On July 30th, Sirius XM subscribers will be assessed a “U.S. Music Royalty Fee” of $1.98 a month for primary subscriptions and $.97 a month for multireceiver subscriptions.  Joe Zarella, chief service head of Sirius XM says, “this fee will be used directly to offset increased payments from XM to the recording industry.”  Most subscribers monthly bill will jump from $12.95 to just under $15.  You pay for the privilege…  

10 Timeline Memories:

1. 1863] Not so civil: The Civil War’s Battle of Gettysburg begins…
2. 1963] Zip It!: The U.S. Post Office introduces 5-digit ZIP codes. And now for the big question: What does ZIP stand for? The answer is contained within the ZIP code story here…
3. 1969]  A princely investment:  Britain’s Prince Charles is was invested as the prince of Wales.  This clip proves that the Prince isn’t always as discreet as he should be…
4. 1979] Walking the Walk:  The 70s version of the iPhone, the Walkman is introduced by SONY. Does anyone still have one???
5. 1979] The Susan B. Anthony coin is introduced. Whose brilliant idea was this???
6. 1980] Mapleleaf pride: ”O Canada” is proclaimed the national anthem of Canada on “Canada Day“… 
7. 1987] All sports, all the time: WFAN becomes the 1st All-Sports station in the nation. The Country format moves to WYNY.  This is Mike Francesa on today’s WFAN which is simulcast on TV.  More in my Commentary..
8. 1995] “Happy Trails“: Wolfman Jack  dies from a heart attack at 57…1996] 42 year-old Margaux Hemingway  takes a fatal overdose one day before the anniversary of her grandfather’s suicide in 1961…1997] Actor Robert Mitchum  is a victim of lung cancer at 79…2000] Walter Matthau  dies from cardiac arrest at 79…2004] Marlon Brando dies from respiratory failure at 80…2005] Singer Luther Vandross passes away in New York, two years after suffering a stroke. He was 54…2008] Roger Allan, former news director of WRKO, passes away from renal failure at 1979… 
9. 2004] Deter takes a dive: Derek Jeter  dives headfirst into the Yankee Stadium stands to catch a foul ball and inspires the Yankees to a 5-4 victory over the Red Sox. Derek’s father, an avid hockey fan, gave Derek the middle name “Sanderson” after Derek Sanderson (who was at my going-away party at one of the restaurants he owned in Boston)…
10. 2005] Sandra’s day is done: Justice Sandra Day O’Connor  unexpectedly announces her retirement from the Supreme Court…

     






Music Memories:

• 1956] On “The Steve Allen Show“:  Elvis Presley sings “I Want You, I Need You, I Love You” and “Hound Dog” to? A hound dog, sitting on a pedestal…
• 2007]  The Concert for Diana:  Prince’s Harry and William honor what would have been their mother’s 46th birthday with a star-studded concert at Wembley Stadium…

Commentary:

Congratulations to WFAN which celebrates it’s 22st birthday today.  WFAN went on the air at 3 p.m. on July 1, 1987 on 1050 kHz replacing WHN’s country music format.  WYNY (103.5) replaced WHN as the country music station.  The call letters of both WHN and WNBC died on that day.  The first voice heard on WFAN was that of Suzyn Waldman with a sports update, followed by Jim Lampley.  A long parade of personalities joined the station over the years including Bill Mazer, Pete Franklin, Greg Gumbel and others… 

“Happy Birthday…happy birthday”:
Liv Tyler (32), Pamela Anderson (42), Dan Aykroyd (57), Deborah Harry (64), Karen Black (70), Rod Gilbert (68), Jamie Farr (75), Leslie Caron (78), Farley Granger (84) and Olivia DeHavilland (93)…

Timeline Countdown: 3 days until July 4th, 13 days until the MLB All-Star Game and 22 days until the NFL summer training camps open…

This entry was posted on Wednesday, July, 1, 2009 at 07: 10:10 p07 and is filed under Today's Post. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.