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Originally Posted by Wren57
I used to watch the stock market heavily and trade in tech stocks (back in HS when I had time to watch it). I've since put almost all my equity in safe long-term big-cap stocks and large mutual funds.
Right now I would be extremely cautious regarding satellite radio stock. With XM and Sirius fighting for not only customers but hosts (see Howard Stern $500M) they are making it cheaper for the consumer and more expensive to produce. The only way they will turn a significant profit is if they manage to get satellite radio mainstream (as in over 80% of cars). Until they do this, I don't foresee them doing so well, and I think we are still 5 years off from this.
I'd say it is a high-risk, high-return stock. Could go belly-up due to costs and slacking customer base, could go up considerably. All up to their marketing department and sales force. Don't put more than 15% of your money in these stocks.
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I agree, they're taking a huge gamble on howard and are paying him way too much. Kind of funny that the president of our country makes like $400,000 per year, and howard stern makes like $100 million for talking on the radio. But in any case their stock shot up when he came over and now it's going down. So yeah maybe they didn't make the best decision. Although it was funny listening to him bash how XM is signing Oprah to her own channel. He was ripping her apart.