Through TheFLY's Eyes: XM Satellite Radio Holdings

from Theflyonthewall.com









Waiting For Oprah

After reporting weak subscriber numbers again yesterday, XM Satellite Radio's (XMSR) stock actually finished the day up. Why?

The primary reason for the uptick is most likely due to a technical rebound after the precipitous drop in the stock from $40 to $10, a 75% collapse.

However, there is one reason to continue following XM: Oprah. XM might finally have found its Howard Stern. The Oprah satellite radio station comes to XM at September's end.

Our investment philosophy regarding the satellite radio business is to stick with Sirius and its big star, Howard Stern. XM's big star comes in September. If Oprah can get subscriber growth accelerating again, XM could be a home run stock. Best advice: Wait to see the Oprah impact.