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SIRI is not a bad one provided you go in before the big spike. There is going to be some pull back in that stock next week I think. A lot of volume from big institutions last week. THey are making the prices right now. Be carefull with that one since they could tank at any point if the big boys decide to dump their millions of shares. SIRI has a ton of debt and not much cash flow or highly liquid assets to cover them from their Q3 financials. Still could be a solid play as long as massive sell off is not in the nesr future.
I subscribe to Wstreet.com Charle Payne who has an impressive portofilio of big gainers. I am looking at a few of his picks last week that gained anywhere from 7-20% and several others that he has seen gains for his subscribers of around 30%+ since novemeber. I asked him about SIRI and he road it from 1.00 to 1.45 then rec'd profit taking and to leave it alone for now until they get their ducks in row with future plans to generate more revenue. They have seen some good things with Sterns renewel and BMW adding their service to the MINI and motorcycles.
Some of wstreets picks you may want to look into are CLUB, ACI, MTL, TGT. They see big returns over the next six months for all of these. They all have solid finacials.
I missed out on SIRI and regret it since i was not even thinking about it. I think I may still go in with small investment of 1000 shares though just in case. The thing that scares me is their liquidity ratios are alarming. I work with my fathers firm and we do business valuations and accounting. We start every valuation spreading the finacials to look at their standing in order to recommend what kind of valuation to do.
When we see ratios like SIRI has, we typically tell the owners we will value as a going concern, but also for liquidation, since they are typicallly worht more dead than alive.
It is still a good idea sometimes to invest in companies you like and that are popular.
SIRI may just be like HBO. When they first came on the scene people laughed and said.."WHy on earth would anyone want to pay to watch TV"? It took some time but it caught on, and they are doing very well now. So SIRI could end up being like this, since a lot of people are of the mind that no one should have to pay to listen to the radio. That will change though.
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