Is it the right time buy Sirius stock?

Question

The chances of XM and Sirius merging are pretty good, and at a $2.62 it looks like a cheap stock that has a lot of potential to grow. Any thoughts?

Answer 1

Sirius is the best money I ever spent.

I absolutely love music.

Absolutely HATE commercials.

However: BAD IDEA IN A RECESSION.

This is a consumer discretionary stock. Which means the general public DOES NOT NEED IT.

In a recession, people cut back. They eliminate all sorts of things.

Eating out.

T.V. Cable

Satellite Radio

Movies

Vacations

Driving Long distances.

Etc.

Answer 2

FIRST OF ALL .. there is no recession.. sure the economy isnt in great shape but our GDP has been claimed in the positive for BOTH of the last two quarters.. we cant call this a recession until negative GDP is posted for 2 straight quarters..

ANYWAYS>.. as for SIRI

im putting in a limit order for a couple grand worth about 1500 -2000 shares at $2.50 .. why not? the stock has hit near its 52 week low.. at 2.62... above by 25 cents..  

i expect that hype of the buyout might run the stock up.. at least for a day or two.. tuesday and wednesday should be good.. the dow is ready for a bump up

.. i'll ride the wave.. try and sell either before bad news or right after the good news..

Answer 3

Bad idea in a recession.

Answer 4

generally, the company that gets taken over has a short term increase in stock value.  however, if there were any special offers to stockholders (i.e. stock splits, etc.) then there probably is a hitch that you had to already own stock by a certain date.