Satellite radio is making a comeback. After being down and counted as out for the past few years, Sirius has done a lot to stop this from happening. The company has stopped the fiscal losses and is expected to post a profit possibly even next quarter, the stock price has gone up over 140% in the past year, and the company is adding a significant amount of subscribers. The company's earnings call last week showed that the company added over 300,000 net subscribers which is 3X more than the previous quarter which helped to add to the companies record revenue since the merger with XM.
As long as the company can continue to add more subscribers to its service, this company has the potential to be quite profitable in the coming years. The stock closed at $1.53 on friday after climbing most the week. I think the stock has the potential to hit $2.00 as long as the companies 4Q posts a profit and adds more subscribers than it did this quarter.
The author of this post owns no position in Sirius-XM(SIRI).