Would you buy Sirius XM stock?

Question

Right now it is trading at 1.40 and I just picked up some a few days ago to bring down my average purchase price that was sitting at 3.65. I know there is a lot of negativity on this stock and 'Yes' I know it's risky but I really feel that they can only go forward from here.....long term.

Answer 1

I would avoid them until they get their expenses down. Look at the balance sheet until you can start to see them make money avoid them. They have over a billion dollars of debt and it keeps increasing until they start making money or the trend of debt reverses stay away.

Answer 2

You are correct, it is risky.  Negative earnings, negative cash flow from operations, and a whole lot of debt.  Since it's going through a merger, I won't make a determination until another couple quarters.

Answer 3

i would never touch this company.  not even with a 10 yard pole.

their equity position is terrible, the bondholders WILL (in my opinion) end up taking over the company which still won't be able to make an operating profit.

1 billion dollars in negative equity is hard to overcome for a company with a 2 billion dollar market cap.

i really don't understand how anyone can be positive on this company at this point.  it might start to become attractive at under $0.40, but even then it's nothing special - just a penny stock for a company that probably won't be in business a decade from now.