This Awesome Sirius XM Radio News is Music to Investors’ Ears

Sirius XM Radio (NASDAQ:SIRI) capped off an impressive rally for the week, closing up 7.69 percent for a 52-week high as the good news kept rolling in for the satellite radio provider. By settling doubts about its chief executive, showing a large number of new subscribers and piggybacking on excellent auto industry news, Sirius showed the life its most adamant apologists have been expecting.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

How good a week was it? Its Tuesday earnings report was close enough to encourage investors, who started the run that didn’t stop until Friday’s closing bell. The near-12 percent revenue increase was plenty for investors to feel secure in the direction the company is headed, despite coming in just below the projected revenue estimate. The full-year projections held, as the company reported an impressive 493,000 new subscribers.

In another bit of positive news, CEO Jim Meyer has lost the interim designation and will act as chief executive on a permanent basis with the blessing of Liberty Media (NASDAQ:LMCA), the parent company of Sirius. As a period of growth appears ahead for the company, there will be no leadership distractions to concern investors. The third piece of news surrounded the auto industry’s continued rebound. All the major automakers are showing an uptick in sales, which means 44 percent of the high volume of new cars will likely become Sirius subscribers…

April auto sales were up 100,000 cars compared to 2012 figures, making projections for the year somewhere around 15 million automobiles. Using the percentage of cars equipped with Sirius (about two-thirds) and the number of subscribers typically gained following a free trial (between 43 and 46 percent), Sirius could see new subscriber figures in the millions from the cars sold throughout 2013, if projections hold.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

More opportunities are available in newer used cars featuring Sirius. With price points just over $14, Sirius packages are proving to be palatable to a consumer base interested in unlimited choices in music, talk radio and sports programming. In reality, there is little competition at the moment to stop Sirius from advancing further.

 

Don’t Miss: Economic Headaches: What’s Behind the Second-Quarter Slowdown?