Through The Fly's Eyes: Satellite Radio
Satellite Stocks Rally Big
Both Sirius (SIRI) and XM Satellite Radio (XMSR) rallied big yesterday. Momentum in both of these stocks is picking up as analysts publish reports on the merits on these two companies combining.
Even more attractive is news that Sirius is saying it expects advertising revenue to hit $60 million. Advertising revenue is almost all free cash flow for Sirius.
Also, Sirius expects to have its service pre-installed with a bunch of new car models this year. Add to this that Sirius should be free cash flow positive this year and is on target for $1 billion in free cash flow by the end of this decade, meaning this rally could have legs and last for a while.