Expert: Paul Henneman - 3/8/2005

Question
I wish to invest in one of the two satellite radio companies but not sure which is better choice.
XM has about 3.8M subs, plug & play technology,announce CFBE in early 2006 and 204,716,000 shares outstanding. Market Value 6.6B

Sirius will have Howard Stern in 2006, currently has aprox 1.3M subs and 1,263,116,000 shares outstanding and no CFBE in sight. Market Value is 7.5B

Also I beleive XM is ahead in auto factory installs.

With all this info, what company would you pick as an investment?  Thanks!

Answer
Jason,
  Thank you for your question!
  My companies research efforts like Sirius. We have it rated a four out of possible five (buy), significantly undervalued, with the following projections for its stock price:

1-Month 5.52 1.26%
3-Month 5.57 2.16%
6-Month 5.64 3.55%
1-Year 5.82 6.87%
2-Year 5.81 6.66%
3-Year 6.59 20.97%

  Of course strong future earnings growth is expected for sirius, so if earnings do not meet expectations, then results would be far worse. And vice versa, if the business model proves effective, earnings could beat expectations.
  Unfortunately I do not have much information on XM, and no valuation or extimated forecasted stock price to offer. So I am not able to offer a comparison. But satellite radio has received alot of attention. THe business model appears to be solid and growing, and as long as you don't think that investors have already rung up the price too far on Sirius, it has interestin potential. But do consider it as a slightly more risky investment due to the recent strong price performance, and the ever changing status of technology. No telling how long or how fast the next thing will take to surpass satellite radio.

Thank you for your question, please do not hesitate to follow up with me if I can be of any additional service!

Sincerely,
Paul Henneman
President
ValuEngine, Inc.
www.ValuEngine.com
www.VEReports.com
www.VEInstitutional.com
(800) 381-5576