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JimVanMeerten (62.19)

Sirius - Seriously?

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6

February 18, 2010 – Comments (8) | RELATED TICKERS: LIN , GNET.DL , SIRI

Back when I was a student I used to spend hours in the library reading Trendlines and Value Line. I learned two important lessons: always know what industries are presently enjoying the best price momentum and then find the best companies in those industries. According to Barchart the strongest industry in the last 30 days has been the broadcasting industry. I begin my search by sorting the industry for the stocks having the best current relative strength and limit my research to the top 10.

To help me whittle down the list I use Barchart's 13 technical indicators and eliminate those that rank below 100% on all 13 indicators. Last, I want to make sure that the stock had a price appreciation in the last 5 days. I'm left with just 4 stocks. Let's research them one at a time.

Sirius XM (SIRI) -- according to their press release: Sirius Satellite Radio is building a digital satellite radio system that will broadcast up to 100 channels of music and entertainment programming to motorists throughout the continental United States. The company plans to offer channels of commercial-free music and channels of news, sports and entertainment programming for a monthly subscription fee. Sirius Satellite Radio has an exclusive agreement with Ford Motor Company to install Sirius receivers in Ford vehicles.

The stock had 8 price advances in the last 20 sessions and increased in 4 of the last 5 days. It has a buy on all 13 of Barchart's technical indicators and had a 56.72% increase in the last 30 days.

On the fundamental side analysts estimate that sales will increase 11.2% next year with a whopping 91.7% increase in earnings per share. The 5 year compounded growth rate is expected at 30% per year. They give the stock 3 buy and 3 hold recommendations.

Lin TV Corp (TVL) -- LIN TV Corp. is a pure-play television company covering the United States and Puerto Rico. They own and operate television stations and provide management or sales services to television stations. Under local marketing agreements, they provide substantial portions of the broadcast programming for airing on another station in the same market as a station they own and operate and sell advertising time for that station.

The stock has enjoyed price appreciation in 10 of the last 20 sessions and had 3 increases in the last 5 days. It too gets 100% rating on all 13 of Barchart's technical indicators and had a 27.38% price increase in the last 20 sessions.

Analysts consensus is for a 23.7% increase in sales and a 1133% increase in EPS. Sounds big but that's voodoo math coming from a loss this year. There is only 1 hold recommendation out there.

Global Traffic Network (GNET) -- Global Traffic Network is a provides custom traffic and news reports to radio and television stations outside the U.S. The Company is a Delaware corporation that, through its two wholly-owned operating subsidiaries, provides customized traffic and news reports to affiliated radio and television stations, in exchange for commercial airtime inventory. The Company operates traffic and news network in Australia, and is quickly ramping operations in Canada. In exchange for providing custom traffic and news reports, television and radio stations provide Global Traffic Network with commercial airtime inventory that the Company sells to advertisers. As a result, radio and television stations incur no out-of -pocket costs when contracting to use Global Traffic Network's services.

Again this stock hits 13 out of 13 for Barchart's technical indicators. The stock had 10 price increases in the last 20 sessions and is 3 for 5 recently. The price increase in the last 20 sessions was 12.67%.

Analysts expect a 10.3% increase in sales and earnings increase of 1050%, coming off a loss. Recommendation of 3 buys and a hold are there.

Sinclair Broadcast Group (SBGI) is the last to make the cut. Sinclair Broadcast Group is a diversified broadcasting company that owns or provides programming services pursuant to local marketing agreements to more television stations than any other commercial broadcasting group in the United States.

With all 13 of Barchart's technical indicators signaling buy the stock had 4 price appreciations in the last 20 session but is 3 for 5 recently. 19.46% price increase in the last month isn't bad.

Fundamentally this is the weakest stock with revenue expected to decrease by 1.2% next year but earning up 10.2%. With only a 3% growth rate consensus for the next 5 years the stock still enjoys 2 buy and 2 hold recommendation from analysts.

I'm not sure what your opinion is but it sounds like Sirius XM Radio (SIRI) is the pick from this bucket of broadcasting stocks. Yes this is a penny stock trading at close to a dollar a share but with volume up to 9 million shares a day, it's a penny stock we can all love.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions at the time of publication

8 Comments – Post Your Own

#1) On February 18, 2010 at 11:54 AM, tfirst (31.27) wrote:

Uh... Siri has had over 150 million shares a day in volume for a long time now....

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#2) On February 18, 2010 at 12:09 PM, Cqqldude (< 20) wrote:

I love it when all the great pundits of doom and gloom are wrong....especially about this stock. My day just got a bit brighter!!

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#3) On February 18, 2010 at 12:16 PM, dstnewman (95.99) wrote:

Perhaps you should do a bit more research on these companies than just looking at these indicators.

 While I agree with you that Sirius is the pick of the litter here, you don't know jack about the company if all you are going by is some line in a PR.

Sirius XM is a merged company, and together provide over 180 channels of (mostly) commerical free music, sports, talk, comedy, and finance. You have CNBC, you have Howard Stern, Martha Stewart, Oprah, you have NFL, NBA, MLB, uncensored comedy, hard rap, soft rock, country, tejano, opera, elevator music, musicals, etc, etc, etc, etc, etc.  The list goes on and on.

 They not only have installation agreements with Ford, but every other car manufacturer that sells vehicles in the United States not to mention a number of USED car dealers.

 Finally, your article is dated for Feb 18th 2010. You call Sirius a penny stock. It has not been a penny stock for the past 2 trading sessions.  You also state that share volume up to 9 million shares a day. You need to get new research software. The average 3 month volume is over 40 million, and the past week or so it has been trading upwards of 150million + shares per day.

 If you would like to follow some real analysis of Sirius XM, follow us over at Satwaves.com. We will teach you something. Rick Munarriz has mentioned us in a number of articles as references.

David "Newman" Phillips
www.Satwaves.Com
Newman@satwaves.com

 

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#4) On February 18, 2010 at 12:35 PM, GNUBEE (26.04) wrote:

"Rick Munarriz has mentioned us in a number of articles as references"

 Ouch.....

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#5) On February 18, 2010 at 1:02 PM, DUHHHHHHhhhhh (< 20) wrote:

What a DUMAZZZZ!!!!!  "Back when I was a student..."  maybe you should go back to school and learn how to investigate and research before reporting such drivel.

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#6) On February 18, 2010 at 1:58 PM, ocsurf (< 20) wrote:

I bought this bad boy at .12 last year and its making me a KILLING!!!

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#7) On February 18, 2010 at 4:31 PM, wanners (93.46) wrote:

Just a heads up and a fyi....the press release you wrote of on Sirius XM Radio, was a lifted paragraph from an article published on Nov. 19, 1999

Here's the link, it's the fifth paragraph down, word for word....

http://www.thefreelibrary.com/SCIFI.com+and+Sirius+Satellite+Radio+Announce+Partnership+to+Develop...-a057636643

 

And another link to the story that was put out today with the lifted old article from 1999

"http://www.benzinga.com/trading-ideas/long-ideas/133072/top-performing-industries-for-february-18-siri-abb-tlvt-mdr

 

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#8) On February 18, 2010 at 9:17 PM, ItAintCool (< 20) wrote:

Out of date and out of touch and just inaccurate on lot's of stuff here (100 channels?).  We all knew SIRI was the pick of the litter when it was in the 5 to 10 cents a share.  Many of believed in the company when it was $4.00 - $6.00 a share and bought in when MF and TSC hammered it down to its all time lows.  Not only do I believe in the product and the company, but now I've just made a $50,000 from it.  At this point I'm playing with the house's money, so I'm going long on SIRI.

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