5 Reasons to Own Sirius XM Radio (SIRI)

Reason #2: Economic recovery will help Sirius

A contributing factor to Sirius’ demise was certainly the weakening economy in late 2007 and subsequent recession of 2008.

No
matter how great the service, subscribing to satellite radio is a discretionary item. With consumers pulling back, it is no surprise
that subscription growth slowed substantially during the year. Even worse, much of SIRI’s sales come from the auto sector. As
auto sales dropped, so did the market for finding new subscribers.

With the recession expected to end this year, look for growth in subscriptions at SIRI to recover in 2010. Will it be the 100%
growth of past? No, but there is still a very large market for SIRI to penetrate, and I expect growth of 30% to 50% in the few
years after the recession ends.

NEXT: Reason #3: SIRI has the advantage of monopolistic
pricing