Sirius will dodge the Stern bullet
Don't fret the potential loss of Howard Stern. Sirius will be just fine, thank you.
Wake up Howard Stern, the world has changed.
Dreams of being the media king that is paid gobs of cash from overzealous media companies are a thing of the past.
Today, I would suggest taking what you can get.
Should you decide to leave Sirius XM (SIRI), don’t let the door hit you on the way out.
Your original deal with Sirius came about as a direct result of death rattle competition with rival XM. Your signing had nothing to do with being the so called king of media.
Your outrageous deal happened because two companies that could not afford to lose you were bidding against each other. With no choice, but to overpay you Sirius bit the bullet and over paid by a long shot.
Related Article: Penny Stocks to Buy - 7 Tech picks
They nearly died as a result.
Today things are a bit different. Sirius and XM are now one and there is absolutely no reason to bid above the market rate for a mediocre and vulgar disc jockey.
Howard’s only threat is to return to terrestrial radio.
Good luck with that.
If you haven’t noticed terrestrial radio is dying on the vine. Ironically, your move back to terrestrial could very well be the nail in the coffin for the media company that decides to be the next player that over pays you.
Related Article: 5 stocks with increasing dividends
As for Sirius the good news just keeps coming and it has nothing to do with having individual stars in the stable. The Sirius model works because it has numerous options and niche channels for its customers.
Terrestrial radio has none of that. The competition between Sirius and terrestrial is not even close.
From an investment perspective, I have often called Sirius a must own stock. Trading now for just over a dollar per share, the potential to double or triple your money is quite real and attractive from a risk perspective.
How can you not love a stock of a company that is essentially a monopoly serving a market that is humongous?
The company continues to escape the shadows of competition with its former rival that nearly resulted in bankruptcy. On Wednesday the company reaffirmed 2010 guidance.
The forecast is for the company to post revenue of $2.8 billion and nearly 20 million subscribers.
Related Article: 5 sleazy gold coin scams
My own longer-term forecast is for the company to double the number of subscribers over the next three years. If so the stock will double in value or more.
That forecast is the same with or without Stern.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.