Yesterday I posted about XMSR. I was asked for a MSM interview for more detail on my comments. If I actually get quoted, I'll leave a link. As I side note, I get interviewed a lot but hardly ever quoted (insert frown).
The questions I was asked allowed me to develop more thoughts about both SIRI and XMSR.
To own either stock is to believe that the managements have long term plans that they are in the early stages of executing. If this is correct then spending money and taking dilutive action will just go with the territory.
The interviewer asked why I don't own either one if I think the future is good (which I do). To own these names now would be adding beta to the portfolio. Media, as a group, is not a great area these days. I don't want to add beta in a group that is struggling. I would rather add beta in a group that has a little more wind at its back.
Wikinvest Wire
3 comments:
Perhaps there is something big I don't understand... but I fail to comprehend why these services will not be displaced when full internet service becomes generally available to vehicles. Either via Wi-Max or through some other satellite system. Internet to the vehicle would be far more useful than radio or GPS alone. If there is a company working on this, who?
great question!
since both have already started to penetrate the vehicle market they have an advatage that they can keep or lose. Keeping it, I would imagine, means integrating whatever comes next into their devices. Maybe that is internet or not but the current product would need to evolve into more things for my scenario to play out.
I don't know if the companies are planning this or not, but it seems obvious.
My opinion: Hard to surf the Internet while driving, these services will always be device like and branded content.
The actually connectivity pipe is not the point but the fact that the FDC has has overrun its original mandidate turning radio into a market that no longer works properly.
Lets hope the content is innovative enough for consumers to switch to satellite forcing the FDC to free up radio for proper competition again.
Down the road a Sirius can change pipes to WiFi, Radio, or any delivery system.
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