Q: Hello
Any idea what charts are saying about where SIRI is going from here?
Frank
A:Hello Frank,
SmarTrend alerted subscribers to an UPTREND on Sirius XM Radio (NASDAQ:SIRI) on 2/17/09 at $0.19. The stock remains in an UPTREND until our system indicates a trend change. As of today’s recent price of $0.57, SIRI has returned 200% since our alert.
Q: Dear Mr. Brian
I saw a tradethetrend item listed on Scottrade, that says tradethetrend is bullish on SIRI. The note says “write to Chip Frian at cbrian@tradethetrend.com. I am not sure I understand what type of information I can ask you about? I own some SIRI shares and am always interested in reports as to how the company is doing.
Regards,
Ron
A:Dear Mr. Duffy,
Thanks for your question and your interest in SmarTrend. Attached is a chart that shows all of the calls made by our system on the stock since last July. Just three lonely trends, which is much less than normal, but as you can see, two of them performed extremely well. SmarTrend called a DownTrend on Sirius XM Radio on 7/29/2008 at $1.62, and subsequently shares fell 88.3% to the Uptrend issued at $0.19 on 2/17/2009. Since that February Uptrend, the stock has risen 167% to today’s closing price of $0.51. It will remain in an Uptrend until our system detects that a certain threshold has been crossed and a Downtrend has begun. If you have not yet signed up for our daily Morning Call newsletter, you can join to get daily market analysis as well as performance updates and highlights of some of our best calls.
Q: I have SIRI at about the same May prices. I was told by one of the sales managers that they are getting good vibes on resale’s.
What’s you take on the upper $2 area in the next year (’10)?
A: Thanks for your question. Below is a chart that shows all of the calls made by our system on the stock since last July. Just three lonely trends, which is pretty rare, but as you can see, two of them performed extremely well. SmarTrend called a DownTrend on Sirius XM Radio on 7/29/2008 at $1.62, and subsequently shares fell 88.3% to the Uptrend issued at $0.19 on 2/17/2009. Since that February Uptrend, the stock has risen 189%. It will remain in an Uptrend until our system detects that a certain threshold has been crossed and a Downtrend has begun. 
Q: Mr. Brian:
I am wondering if you would be willing to share your perspectives on Sirius stock. I am an investor, and I am trying to find information about its merits.
Thanks for responding when your time permits.
Arthur
A: SIRI has had quite the fall over the past several years. After issuing a Downtrend in July 2008, we Uptrended the stock on 2/17/08 at 19 cents. Despite doubling since, SIRI had had trouble getting through the 50 cent mark and staying there. This gives us some pause as any rallies at this level may once again meet resistance at that level. Ideally, you would like to see a breakout above 50 cents in order to confirm that Sirius is ready for new highs. I think to do so, investors will need evidence that the company can continue to increase subscriber using alternative means such as iPhones and other handhelds since consumers may balk at spending more for a new device to listen to radio when streaming options are available. This will be critical to combat the decline in auto sales which Sirius has relied on for new customers as new cars were coming with satellite radios. Further, the company will need to show that can in can add these subs profitably as the company has overpaid (in the eyes of many) for content which has caused some dilution in the equity. Perhaps there are other strategic initiatives the company can pursue. Much of this is speculative and its reflected in the currently low price per share level.
