WorldSpace, Inc. (NASDAQOTH:WRSPQ.PK)
The Company provides high quality radio programming, including a wide variety of music, news and entertainment channels and also broadcast unique WorldSpace-developed programming.
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Recs
Jumping on the bandwagon without much research. Financials are ugly, and I'm not much on satellite radio.
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5 star stock after horrible day
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Bankrupt shortly
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No chance in hell they avoid bankruptcy.
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Earnings are expected to be $3.58 a share this year and $4.37 a share next year (these numbers will probably be missed). When you see a stock losing more than they are worth, it is time to bail.
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When you lose 36M in a quarter, and you're only worth ~160...
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This company is the black hole for cash. For every satellite radio package they sell, they lose quite a bit of money. Their business plan sucks -- lets sell satellite radio in countries where most people don't even have a car, or a computer. The executives have ridiculous compensation packages that will allow them to quickly siphon millions away from the company before it runs out of cash for operations, which will be in the next 12 to 24 months. I've never seen so many large negative numbers in a financial statement in my life!
Recs
Worldspace has a bad business model, subsidizing head acquisition in India for such long periods that churn will kil them. The restructuring of the debt prior to the IPO puts the company in the position of never being able to reward shareholders. The dependence on XM radio as well exposes them to the inability of XM to ramp up listener bases at a rate similar to Sirius. In short, stay away.
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WORLDSPACE acquires exclusive radio rights for cricket.
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Eventually people are going to hear that there is another satellite radio company serving the fastest growing economies: India, China, and Europe. Worldspace will probably not be profitable in my lifetime, but that doesnt matter to people that get in on satellite radio stocks...
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There should be a suicide lucky charm for this pick. But it's purely a contrarian speculation. The company looks horrible long term and I'd never actually buy the stock, but for a short-term play, it looks like it could have the proverbial dead-cat bounce. Or not...
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