A Fools-eye view of Sirius XM


A Motley Fool sees Sirius XM as a hurdler that keeps taking on weight, making each successive set of hurdles more difficult to get over. And even it seems to question how long it can keep on hanging on. Rick Aristotle Muniz is the Foolish observer, who notes the lack of luck afflicting the company, even beyond the adverse economic conditions affecting everybody. The fact that automakers are being hit particularly hard deprives the company of fresh listeners, and also inspires suddenly cost-conscious consumers to slash unnecessary monthly bill, of which a Sirius XM subscription is a prime candidate.

He flagged a passage in the company’s Form 12b-25: “Management has not yet completed its evaluation as to whether substantial doubt exists relative to the Company’s ability to continue as a going concern for a reasonable period of time.” Muniz notes this sort of pronouncement is generally in the auditor’s domain, not the company itself, suggesting the company is trying to get ahead of its own bean counters.

Muniz says it’s hard to deny almost 19M subscribers, but suggested the string-laden cash infusion from Liberty essentially buys three months, technically.