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Reason #3: SIRI has the advantage of monopolistic pricing
SIRI was forced to endure 18 months of uncertainty while the government evaluated whether or not to approve the merger with
XM. The most important issue related to the long-term pricing power of a one satellite-provider operating environment.Even though there is plenty of competition from other media, like the Internet, iPods and cell phones, SIRI is the only game
in town in the satellite radio space. That position is incredibly powerful and valuable, especially during periods of economic
strength.Obviously, we are in a period of economic weakness. When that changes, look for Sirius to exploit its monopolistic pricing power
over time. Since Sirius hasn’t yet increased prices, the ability to do so down the road has yet to be priced into the stock. In
fact, if not for the debt and economic crisis, monopolistic pricing would be reason alone to own this stock.NEXT: Reason #4: The Government owes it to Sirius and
its shareholders
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