OT - SIRI and BBI

This has nothing to do with the 7 series but I was wondering if any of you guys have been watching SIRIUS and Block Buster stock? Sirius (SIRI)is at .45 cents a share and Block Buster (BBI)is at .65 cents a share. Block Busters SVP left the company yesterday and a new one has not been named so i'm thinking at this price it's silly not to get 50k shares what do you guys think?

I have been following SIRIUS, not so much Blockbuster. If I had any balls I would buy $100,000 of SIRIUS. I think SAT radio is here to stay and everyone that I know who has it loves it. Trouble is they aren't making money, but they do not have any competition, so it would have to go bust to lose your money at this price. Blockbuster scares me. They have serious competition from netflix, cable companies, direct TV, supermarket vending, etc.

I dont have the balls eiether but 50k shares isn't a bad gamble SIRIUS is cleaning up their debt and I believe it has to be a couple dollar stock maybe not 14 as it once was but a hell of allot more than what its at. My buddy bought 1 million shares at .10 cents a share and will not do a thing until it hits 1.00, he also bought a RR Drop Head so he can afford to play like this. BB does have competiton but compared to the competition its WAY underpriced I think. Netflix is trading at 40.00+ a share compared to .67 cents I'm going to do something with SIRI and keep watching BBI.

Originally Posted by dfauerbach

This has nothing to do with the 7 series but I was wondering if any of you guys have been watching SIRIUS and Block Buster stock? Sirius (SIRI)is at .45 cents a share and Block Buster (BBI)is at .65 cents a share. Block Busters SVP left the company yesterday and a new one has not been named so i'm thinking at this price it's silly not to get 50k shares what do you guys think?

There is a REASON the SVP left the company. It's called viability. With all the electronic forms of obtaining the videos (i.e. downloads), the lifeblood of the DVD market (KIDS walking in) is dwindling. Sure, there is still the occassional grandma or grandpa who can't operate a PC that is still renting but all the KIDS that used to do that now simply download them. They don't have to wait for the 'rents to get home, they don't have to beg for money (onlines are typical subscription services,e tc). In short, BB is struggling and unless they move faster than they have been, they will simply be an 'also-ran" in the market. If they do stay in business, they will likely have to execute a reserve split (something like 50-to-1) and that is NEVER good (You typically see any additional 20% decrease from the pre-split price after the split). So, make certain you calculate the CURRENT values based on such actions. .65/share is really worth .40/share.

If you want to play with $'s and you think satellite TV is a winner (ala Siruis's Backseat TV), then one of it's competitors who won one of the largest EVER settlements ($500million or so) against Boeing is currently trading for .62/share. As with all sub-buck shares, they all have their own risk. ICOG has recently abandoned it's North American operations (this is the division that competed directly with Siruis for the mobile TV market) but the Boeing settlement alone is valued at around $4.00/share. Full disclosure - I currently hold around 3K shares of ICOG with a cost around .45/share and may well dump it in the near future. I have held as much as 20K shares of it in the past. I have sold it as high as $1.40 about 4 months ago. I have no insider information but a division of the company I work for did participate in the development of the Satelitte-to-ground design, development and testing for their North American Group. When they closed their doors, it was a surprise to us as well. Luckily, by then all but these last few shares were already gone. While the $4/share is REAL value, getting it from Boeing in a timely fashion may be another issue therefore most analyst place the book value of gthe company around $0.72/share which explains why it is trading in that range currently. All this is public information. You just have to know where to look to find it.

I own some SIRI got it cheep and plan to sit on it for some time.

SIRI is still in pretty bad shape despite having avoided bankruptcy. Their fixed costs are extremely high and they will be passing increased music royalty fees to customers. At a time when the economy is still in horrible shape, Satellite radio is one of those discretionary expenses for most people. Most of their subscriptions come from sales of new cars, which are pretty much just sitting on the lot right now. Although considering the Toyota Camry is the best selling car in America and will now have a satellite radio option (standard for upgraded audio), hopefully this helps. For me, it's an absolute necessity! I've had SIRI for several years now and I'll never go back to terrestrial radio! I truly believe in this company and I'm hopeful they prosper in the years to come.

I recently upgraded my plan to the lifetime plan..which is $399 (something I should have done long ago). This may sound like a lot, but considering the Sirius everything package is currently $12.95 and will be jumping to $14.95 starting July 29th upon next subscription renewal, it's worth it. Lifetime subscriptions will never have to pay the increased music royalty fees! The package will pay for itself in a little over two years.

As for Blockbuster, they haven't made money in years and their stock price reflects it. I believe they are owned by one of the big media companies, but it's no longer a viable business plan.. hence why you see many Blockbuster locations around the country closing.

i am thinking that BB is gonna close soon, real soon