Thursday, December 16, 2004

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.

1 comments:

Jack's Old Merrill Pal said...

Oh Doctor! I listen to your comments about Courtney? and the way they listen to music and was thinking that SIRI is trying to develop the content and not necessarily the distribution. In other words, their money, appears to me, to be invested in the content.

I guess it comes down to a chicken or an egg situation.

By the way I am still hip enough to enjoy the iPOD and the various things you can do with it.

As far as less is more, I used to carry a cell phone and a PDA. When the two merged, I ran as fast as I could to the new product and would not go back. I suspect the SIRI's of the world will have the same, large obstacle to overcome at some point.