Sirius is at $4.12 and XM is at $13.80.
2006-09-14 04:50:29 · 7 answers · asked by pastor_fuzz_1 3 in Business & Finance ➔ Investing
Market price of these two companies has very little bearing on reality. The price is mostly based on expectations although number of outstanding shares does play a part in the equation.
XMSR has 268 million shares outstanding
SIRI has 1.4 billion shares outstanding over 4 times the amount of stock.
So if sometime in the distant future either company should happen by chance to turn a profit, which is doubtful at this point, the earnings per share with be 4 times greater for XMSR than for SIRI.
Both companies are financial basket cases relying on borrowed money to stay in business. Neither company is generating enough revenue to cover expenses, not by a long shot. Not even by an ICBM shot.
2006-09-14 05:49:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Stock price doesn't mean anything. If XM did a three for one stock split, they would have the same price -- but no change in value would have taken place.
The important thing to look at is the return on investment. Despite the fact that Sirius has a lower stock price, it has actually outperformed XM in the last year. Sirius has lost about 45% of its value, while XM has lost over 60% of its value.
2006-09-14 08:54:18 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
Sirius could do it if they had better management. Their historical track is very dicey as they definitely go for the larger peaks and valleys. About 5 years ago, I bought 1500 shares at $0.80/share and then sold all of them for almost $4.00/share. Then I took that money and bought XM at almost $13/share. I wish I had sold it when it hit $40/share -- as it was, I sold the XM at $28/share. Now I am glad to be rid of both!!
2006-09-14 06:48:00 · answer #3 · answered by Xhasted Mom of 2 3 · 0⤊ 0⤋
and the celeb du jour drawing them to the service.
Oprah is the XM star and people are OVER Howard Stern on Sirius.
2006-09-14 04:58:18 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Primarily because XM has a much larger number of subscribers.
2006-09-14 04:52:20 · answer #5 · answered by Jt 2 · 0⤊ 1⤋
Just by looking at the difference in the stock price doesn't tell the whole story. It is all relative.
2006-09-14 04:58:48 · answer #6 · answered by bamski 1 · 1⤊ 0⤋
The price per share doesn't matter when you compare it to the price per share of another company.
XMSR = $3.71B market cap. $766.10M annual revenue.
SIRI = $5.80B market cap. $423.58M annual revenue.
Neither company is operating at a profit.
2006-09-14 05:05:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋