Just last December, Sirius shares were near $8. They hit a multi-year low yesterday at $3.50. And, there seems to be no catalyst to turn them back North again.
The Motley Fool has even mentioned that Sirius might declare bankruptcy to end its dependence on mountains of debt. At current prices, the stock still may be too high.
Sirius cut holiday expectations and year-end guidance, placing its goal to be cash flow positive in the fourth quarter in jeapordy. Rival XM had already muted expectations for the latter part of the year.
The big question about Sirius now is whether it can mount any meaningful growth in 2007 without sharply increasing its marketing costs per subscriber.
The prospects look dimmer all the time.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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