No. of Recommendations: 1
Anyone buying SIRI here? Near a 52-week low and yielding just over 4%. Westchler seems to keep buying and fellow shareholders include Seth Klarman from Baupost and Steve Cohen. That's pretty good company. Could all three be wrong?
No. of Recommendations: 1
Interesting question. SIRI is getting kicked out of the Nasdaq 100. I wonder if they think the price has dropped too much? Income has been pretty flat since 2021. I have the receiver in my car, but only use the free, no credit card, trials that the auto dealers give me every once in a while after I have work done there. Haven't been tempted to pay for it yet, the song list on the various channels is just too small.
No. of Recommendations: 2
I don't see how satellite radio is viable long-term. Why not use a streaming music service provider that lets you customize what you're listening to? One thing to note is that a few car companies have started not including the satellite radio receivers in their cars - mostly notably Honda with the Accord and upcoming Civic Hybrid. If the car companies don't play nice, where's the new business going to come from?
No. of Recommendations: 2
I bought some LSXMK today, and have bought higher too, around 25/26.
This is a somewhat sticky product, low churn, and has consistent cash flows, not all that growing to be fair.
Definitely the older, wealthier cohort is the target subscriber. Kids today, yes, I agree they’re on Spotify mostly.
Management is long tenured and they seem to have been able to maintain and ever so slightly grow the subscriber base and like I said before churn is less than 2%.
On a recent conference call the CEO reiterated guidance for the year (said this a couple of weeks ago), trading at a very low valuation, decent yield here 4%+.
They have been out of the market on the repurchase side due to the reorganization, but when they get back to repurchasing they usually buy a healthy amount. Last five years FCF is around 1.5B per year, flattish, on a MKT cap of 10B, that is pretty good firepower for repurchases, which I think is the Ted W playbook.
