Follow Howard Lindzon: Get every new post delivered to your Inbox. Just enter your email address below and click follow.

Satellite Radio….finally on Wallstrip

There is no reason to cover these obliterated stocks other than “The DEAL”. First their was “The DONALD“. This one has way more hair on it!

I have been negative on Satellite radio for …forever.

We all knew it was coming and when it arrived…the blogosphere exploded, but the market yawned.

Roger Ehrenberg ran Monitor 110′s engine for us and produced this deep gem on the merger and possibilities .

It’s a monster deal for sure and who the hell will ever figure it out, no one knows. Smarter, more informed people than I say that it will be pushed through Antitrust. My gut says it will as well. Too much at stake to let both be flushed as stand alones. They would spend themselves into oblivion eventually.

What irks me is that management is getting rewarded for drunken behaviour, while shareholders have seen value bludgeoned.

It’s an intersting inflection point for the industry. Sirius has less subscribers, but more passionate users and a bigger market cap. I tried out XMSR during the Wallstrip Show , in the Wallstrip Scion (soon to be a Bentley :) ). The Scion rocks, XMSR is lamo.

It is frustrating to see so many people waste so much investing energy on what is a giant finacial train wreck. The cost savings could turn this mess around as The Washington Post speculates, but the stock’s have so much market cap built in, that I don’t see the growth story. How about these 10 issues that Wired Magazine’s blog points out .

To short this industry seems just as foolish at this time. Sirius users, love the product . It’s a warzone with so many conflicts, you don’t have the tools to succeed.

It will be interesting to watch this unfold from the sidelines.

BTW – driving with Lindsay is a panic :) . Thanks to Jon Labes and crew for a great edit job.

Disclosure – Long Lindsay and Fresh Bread and no positions in the stocks mentioned.

Back

© Trends… Find them, ride them and get off.. All rights reserved.