Friday, June 20, 2008

SIRIUS seriously falling ( SIRI ) .

Sirius stock has been hurt bad over the past few days. The company received great news as the FCC chairman finally responded after like 17 months to a merger with XM satellite radio (XMSR). He said he approves the merger and now after passing the Department of Justice and his opinion it moves on to a five member panel. Some analysts are saying that the deal is not done and will face some time in front of this panel with a decision likely in July. I still think the merger will take place and will help both companies.

The shares are down to $1.99 and XMSR has been hit hard too. If the deal goes through XMSR actually sells cheaper (Remember that for every share of XMSR you have you receive 4.6 shares of SIRI). The shares are down based on a downgrade and price drop by a Goldman Sachs analyst.

I am still recommending buying with a slight hesitation and a lowered price target of $5.00 next January.

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