This morning, both Sirius Satellite Radio (NASDAQ:SIRI) and XM Satellite Radio (NASDAQ:XMSR) are trading lower. It appears that a key analyst that had been a defender of the keep has decided to cut bait. UBS has downgraded both companies from its "Buy" rating down to "Neutral."
Back on April 27, UBS raised both ratings to a BUY 2 after Lucas Binder said that Sirius would have better cash flows in 2008 than XM.
Just recently we noted that the bias was tipping toward an approval from regulators, although we also have recently noted after the big run in the stock that the future model will still dependent upon subscriber growth to be a winner based on the price caps.
Shares this morning are trading lower on SIRI by 2% at $3.43 on active volume and XMSR shares are trading down 0.7% at $14.72 on very thin volume.
Jon C. Ogg
September 19, 2007
Jon C. Ogg produces the 24/7 Wall St., LLC Special Situation Investing Newsletter; he does not own securities in the companies he covers.