This is one of those I-told-you-so posts. I did say in the past that SIRIUS was built on hype and I seem to be correct about it. In January, they announced subscription number of slightly greater than 3.3 million. Today's announcement tells us that it is in the ballpark of 3.31 million. So SIRIUS failed to deliver miserably. XM has been dropping like a sack of hot potatoes. SIRIUS isn't doing that good either.
Might I suggest INDEX FUNDS for people who really want to make some money in the stock market? INDEX FUNDS are guaranteed to return market average. Say the index fund is tracking S&P 500 index. What this means is that if S&P 500 increases by 10%(which has been the average return in the past), your investment will increase by that margin for sure. There are hardly any INDIVIDUAL INVESTORS who have a track-record of beating the market average. It is almost impossible to do without CAREFUL study of the market, which us amateurs have no time to do. Therefore, index market is the best idea. With the market crapping lately, it might just be better to put your money in a savings account in your bank. The market seems to be bearish.
But I'll put about 10K in the index fund in the near future. I have 10K in money market, and that money seems to be going nowhere.

Investing in the STOCK MARKET is GAMBLING. The market is highly efficient. There is no real way you will make money unless you go for INDEX FUND. That's the bottomline. And even then there is considerable risk. Who knows, the market might never RETURN TO NORMAL.

So many years did it take it for you to finally realize the fact that investing in stock market is gambling after all ?

But you know what I love gambling in any aspect of life except in casinos.

yeah! AG Edwards just downgraded SIRIUS before the earning report this afternoon.

These satellite radio are spending more than they possibly can earn in near future paying Millions of dollars to Howard Stern and Oparah. What kinda business model is that? Recently, a top level Executive of XM quit his job because of that.

ला, आज एक दिन मा मेरो एक मिलिएन डलर डुब्यो,खाइ नखाइ जम्मा गरेको पैसा, ...:-)
honesty dude कागलाइ बेल् पाक्यो, हर्ष न बिस्मात

I guess SIRIUS was an exuberant hype created by STERN.

Anyone in Option Trading.....or any broker or trader in our "Sajha Stock Exchange"?? Good to hear some professional thoughts on stock.
Would be interesting to hear similar thoughts on NepSE.
www.nepalstock.com
...............
new user in sajha. I am a broke student and do not own any stock.

Yup it was down over 6% on friday but as a long term investor you cannot let the ups and downs in the market emotionally affect you. Both XM and SIRIUS are going down cut throat business path but I think in the long run satellite radio is the way to go. Possibilities are endless and I have my faith in SIRIUS. Heck if you can't even take chance on an under $5 per share stock, then you probably shouldn't be investing in the stock market all together.

Bulls & Bears, we have recently started talking about stocks and investments here in sajha and you can check out this link for more: http://www.sajha.com/sajha/html/openforum.cfm?forum=273

We should have more in the coming day, so keep an open eye if they interest you.

BTW u_day bro, have you checked out NUAN lately, just couple weeks ago when i recommened that stock it was around $8 per share and now it is already at $10.17 and still going up. Folks should jump on this bandwagon because this particular company and its technology has a potential to be a $50 stock in 5 years.

I would advise against buying NUAN shares. Just take a peek at their balance sheet. It seems to be a struggling company with no real justification for its recent strong showing. I advise shorting it. In the quarter ending December, 2005, NUAN ended with a loss of 4.9 million dollars. It has negative EPS. Sure, it's revenue has increased every year, but it seems to me that the balance sheet and income statements suggest that the company is struggling. It is advisable to steer clear of companies that don't make any profit. The price/sales value is also grossly high. Enterprise value/EBIDTA is way too high, with a whopping 62.03. Furthermore, the book value is at 3 dollars. Price per book is at 2.85, which is not that good either. Return on Assets is way low, and Return on Equity is negative. Forward P/E is at 22, which is high as well. Overall this seems to be a growth stock with some momentum because it filed a lawsuit recently. This company is very risky.

I say sell the company as soon as its momentum starts receding. This stock could go on a downward spiral very quickly. The company is near its 52 wk high. What goes up must come down. The reason the value went up was because they announced a LAWSUIT on friday. Surely, it can't keep the momentum going. Remember, the value was at $9 approximately(on Thursday) before the lawsuit announcement. This would be the worst time to buy this company's shares. Nobody can predict the outcome of a lawsuit. Everybody thought OJ was guilty.
I used the same criteria for judging SIRIUS. On Friday, we came to know that Sirius's loss has widened. The company decided to pay $100 million a year to HOWARD STERN. How on earth can that pay him? Furthermore, SIRIUS also gave Howard bonuses lately (worth millions) in the form of shares. This company is risky. Their loss was 311 million last quarter, hardly pocket change.
I use the 7% cutoff point. Don't keep the stock if the loss is more than 7%. Dump it and buy shares of a more promising company.

Here is a list of companies I find promising. Let me know what you all think:
SKM
HOV
DHI
TLB
LIZ
HMA
SPF

Please critique my portfolio. How would you rate them?
But I have become disenchanted with the stock market lately. Index fund might be a better idea. 10% annual return(with an occasional negative return) might not be a lot, but over the course of 30 years, you have tripled your value, without taking compounding into account.

hey kewlio, since your last posting NUAN is still going srtrong for me but SIRIUS has taken a pretty bad hit but as a long term investor i am sticking with both of them for a while.

how is your portfolio coming along? the last time i checked most of them were real estate related and i was going to suggest you to diversify into some other industries too but i couldn't find this thread for the longest time after it was gone from the main page.

how about for the rest of you? u_day bro ke cha halkhabar? man google is taking some serious hit the last month...which is really affecting my yahoo shares too...ahh well should have know better beforing investing on dot com :p

Hello there, it seems like I posted the message above on February 18. The price of Nuan on February 17 was at 10.02. It has been about 20 days or so since then, and it looks to me like Nuan closed at 10.08 yesterday. So, I guess it did make some gain. But anyways, I still say I would avoid it.
Sirius is definitely a good company, but now is not the right time to invest. I will invest once they start making some money.
Those companies I mentioned seem to keep going down and down and down, except for LIZ. Just for the record, those companies were what I got after I screened using a certain criteria. My actual portfolio isn't making much money either. It's neither moving up nor going down. Been about a couple of months.

Yeah it's the way market it these days...as long as you are not losing you should be happy. My portfolio is also going through pretty big up and down swings these days but that's cause I have most of mine in energy stocks. I like LIZ too and actually have it in my watch list.

On SIRI, it's not doing good right now but if you know it is a good company, it's the perfect time to invest. It's priced at under $5 and good companies going through rough times are always a buy for long term investment.

I should have bought LIZ on the day kewlio mentioned it. It's doing pretty well!

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