SOLD SIRI AND XMSR

The recent excitement over satellite radio has given me a case of the willies. The business is certainly in the financial news. Of all the stocks I have mentioned over the past several years, I got the most response in regard to SIRI. In the short run, excitement or momentum can push a stock up in price. In the long run, the business model has to beat other models and the business model has to be executed well.

This morning I sold shares in SIRI and XMSR. These particular blocks were bought on June 10, 2003 and the profits made were 274% and 245% respectively.

I still believe these firms have huge potential and that they will be successful. It simply seems that the short term excitement may have pushed the stocks up a little too high.

The question that pushed me over the edge; Will a person who has a camera, TV, radio, organizer, and internet browsing cell phone also carry a satellite radio with him? Car entertainment centers are in the works that are mind boggling but, so far, satellite radio is just radio. Local radios across the US are going digital. Competition is fierce.

This morning Jib Jab announced a deal with Yahoo. The deal is for Jib Jab to produce short cartoons that will be distributed by Yahoo. These popular cartoons will not play on a satellite radio but they will on a Sprint telephone.

I have not reinvested the proceeds.