The future looks bright for Sirius
The future looks bright for Sirius
In early May, my esteemed colleague here at Strategy lab, Jon Markman, wrote a rather scathing piece regarding the valuation and future prospects of Sirius Satellite Radio. In the fairly emotional piece, Markman suggested that investors may finally be realizing the errors of their ways as the company continues to pile on losses amidst a healthy valuation.
Needless to say, I could not disagree more with Markman’s conclusions. Readers of my work know that I have been a long time fan of the prospects of Sirius so it should come as no surprise that I found the recent bashing by Markman to be nauseating at best.
While I agree that the company sports a healthy current valuation, my premise for treating Sirius as a Rational investment stems from the enormous future prospects of its business model. I do not, nor should any sane investor be focused on quarterly results and increased spending in the near term when it comes to a purely speculative and long term growth investment such as Sirius.