SIRIUS XM Radio Inc. (NASDAQ: SIRI) was seeing an elevated bit of options and stock trading yesterday and the shares are performing well again today.� Today’s performance is from Lazard Capital Markets reiterating its “Buy” rating after SIRIUS raised its internal subscriber targets last week.� There is another far less optimistic call on SIRIUS XM today from BreakingViews that was shown on CNBC, but so far the bulls are winning.
Lazard reiterated the BUY rati
ng and $1.35 target on the stock, but also followed SIRIUS XM’s lead with higher subscriber counts.� The new subscriber counts are put at about 1.383 million and ending the quarter with more than 20.15 million subscribers.� One other issue helping out: higher car sales.� There is some caution here though and that is in the form of higher subscriber acquisition costs.
The cautionary view came from Rob Cox of BreakingViews on CNBC today.� The primary concern revolved more around the free Pandora internet radio that smartphones can now stream as free competition.� Cox did note that SIRIUS XM does have it mojo back and the stock is now nearly worth $5 billion.� Cox noted that Slacker and Pandora are both making inroads and a new synch technology could pose a threat down the road and they play more than just music.
The Lazard call is helping, but at $1.30, that only leaves another $0.05 until the price target objective is met.� Even other price target objectives of $1.50 are now getting closer and closer.� At some point valuation has to come into play because buying SIRIUS for a $0.05 gain to $0.20 gain is now an inverted risk-reward matrix for investors… unless price targets get boosted further.
SIRIUS XM is hitting yet another 52-week high today as shares hit $1.30.� At 1:30 PM EST we have also seen more than 63 million shares trade hands versus an average volume of about 71 million shares.
JON C. OGG
Showing posts with label AAPL. Show all posts
Showing posts with label AAPL. Show all posts
Friday, April 27, 2012
Thursday, March 15, 2012
Best Wall St. Stocks Today: GOOG,MSFT
When a reporter asked Google Inc. (GOOG) Chief Executive Eric Schmidt recently about whether the search engine giant was making money on the Android mobile phone operating system, he had a strange answer: �Trust me that revenue is large enough to pay for all the Android activities and a whole bunch more.”
Of course, Google does not break out revenue numbers for Android, claiming it is all part of the search business so investors have little choice but to take Schmidt at his word.� His boast may have less to it than meets the eye.
Google spent $898 million on Research and Development in the second quarter.� The company is smart enough not to put all of its eggs in one basket, but it’s probably a safe assumption to assume that Android costs were at least $100 million, which for a company that generated almost $24 billion in sales last year is hardly significant.� Even though sales of Android-powered phones are soaring, Google does not make a dime off them since it gives the OS away for free.
So, how does Google make money off Android?� The same way it’s always done it — advertising.� In theory, someone using their Android-powered phone will be more apt to click on contextual ads that appear after user searches.�� The more devices that have Android, the more likely users will use Google services. How much it will play out in reality is tough to say.� Google already controls by one estimation more than98 percent of the mobile search market.
To be sure,� Android has earned legions of fans and has managed to steal some of the iPhone’s thunder.� Google is banking on the massive scale of Android to generate profit what Dan Frommer at Silicon Alley Insiderdescribes as “a bet on the future of mobile advertising.”
iSuppli estimates that Android will surpass Apple’s share of the smartphone market by 2012 with 75 million Android devices to 62 million for Apple. Moreover, Android’s share will rise to 22.8% of the market in 2014, and! that Ap ple’s iOS will decline to 15.3%.
Schmidt recently told the�Wall Street Journal:�If we have a billion people using Android, you think we can�t make money from that?�� He estimated that mobile devices could be a $10 billion business for Google without providing specifics such as how or when.� Google does have a history of creating services that people like.
Gmail and Google Docsare gaining share at the expense of Microsoft Corp. (MSFT). Google Maps probably has overtaken MapQuest.� Google’s instant messaging service Google Talk also is popular.� None of them has added much to Google’s bottom line.� Some competitors such as Microsoft CEO Steve Ballmer have questioned how Google will ever make money with Android. He has a point.
And perhaps further evidence that Google will spend money without a business plan, Direct� TV has announced that the search giant will begin selling ads on channels including Bloomberg, Fox Business, Centric, Fuel, G4, Ovation, Fit, Sleuth, Chiller and TV Guide.
Even though Android is a great product, that does not mean it’s a profitable one.
-Jonathan Berr
Of course, Google does not break out revenue numbers for Android, claiming it is all part of the search business so investors have little choice but to take Schmidt at his word.� His boast may have less to it than meets the eye.
Google spent $898 million on Research and Development in the second quarter.� The company is smart enough not to put all of its eggs in one basket, but it’s probably a safe assumption to assume that Android costs were at least $100 million, which for a company that generated almost $24 billion in sales last year is hardly significant.� Even though sales of Android-powered phones are soaring, Google does not make a dime off them since it gives the OS away for free.
So, how does Google make money off Android?� The same way it’s always done it — advertising.� In theory, someone using their Android-powered phone will be more apt to click on contextual ads that appear after user searches.�� The more devices that have Android, the more likely users will use Google services. How much it will play out in reality is tough to say.� Google already controls by one estimation more than98 percent of the mobile search market.
To be sure,� Android has earned legions of fans and has managed to steal some of the iPhone’s thunder.� Google is banking on the massive scale of Android to generate profit what Dan Frommer at Silicon Alley Insiderdescribes as “a bet on the future of mobile advertising.”
iSuppli estimates that Android will surpass Apple’s share of the smartphone market by 2012 with 75 million Android devices to 62 million for Apple. Moreover, Android’s share will rise to 22.8% of the market in 2014, and! that Ap ple’s iOS will decline to 15.3%.
Schmidt recently told the�Wall Street Journal:�If we have a billion people using Android, you think we can�t make money from that?�� He estimated that mobile devices could be a $10 billion business for Google without providing specifics such as how or when.� Google does have a history of creating services that people like.
Gmail and Google Docsare gaining share at the expense of Microsoft Corp. (MSFT). Google Maps probably has overtaken MapQuest.� Google’s instant messaging service Google Talk also is popular.� None of them has added much to Google’s bottom line.� Some competitors such as Microsoft CEO Steve Ballmer have questioned how Google will ever make money with Android. He has a point.
And perhaps further evidence that Google will spend money without a business plan, Direct� TV has announced that the search giant will begin selling ads on channels including Bloomberg, Fox Business, Centric, Fuel, G4, Ovation, Fit, Sleuth, Chiller and TV Guide.
Even though Android is a great product, that does not mean it’s a profitable one.
-Jonathan Berr
Friday, January 13, 2012
Credit Cards: Weighing Bad Debt Against Any Debt At All
Bank uber-analyst Meredith Whitney wrote in The Wall Street Journal that the economy will have more problems as banks take credit cards away from people to prevent bad debt write-offs. She says “Just six months ago, I estimated that at least $2 trillion of available credit-card lines would be expunged from the system by the end of 2010. However, today, that estimate now looks optimistic, as available lines were reduced by nearly $500 billion in the fourth quarter of 2008 alone.”
That leaves a possible revival of consumer spending in a hell of a mess. Most consumers are having such a rough time with their current debt along with the?possibility of?unemployment that they are hardly spending any money at all. If the economy begins to get better, their credit cards may have been taken away by their banks. They may have a tiny big of money to spend, but no easy way to do so.?That should slow the recovery by a significant amount.
Then there are those few people who do have money now and might be enticed to spend it as deflation brings the prices for almost everything down. And there are people who will?have more money because of proposed tax cuts.?Without credit cards, will those people pay cash? Not likely.
Banks have already pulled massive amounts of credit out of the system by denying new loans to businesses and consumers. And extinction of the credit card will make that a lot worse. The only solution may be for the Treasury to issue plastic to consumers. Instead of the MasterCard (MA) or Visa (V) logo,?they can?carry a picture of President Obama.
That leaves a possible revival of consumer spending in a hell of a mess. Most consumers are having such a rough time with their current debt along with the?possibility of?unemployment that they are hardly spending any money at all. If the economy begins to get better, their credit cards may have been taken away by their banks. They may have a tiny big of money to spend, but no easy way to do so.?That should slow the recovery by a significant amount.
Then there are those few people who do have money now and might be enticed to spend it as deflation brings the prices for almost everything down. And there are people who will?have more money because of proposed tax cuts.?Without credit cards, will those people pay cash? Not likely.
Banks have already pulled massive amounts of credit out of the system by denying new loans to businesses and consumers. And extinction of the credit card will make that a lot worse. The only solution may be for the Treasury to issue plastic to consumers. Instead of the MasterCard (MA) or Visa (V) logo,?they can?carry a picture of President Obama.
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