Sirius XM Radio Inc (SIRI): Four Reasons a Bear Should Worry

There’s also no empirical evidence to suggest that Pandora Media Inc (NYSE:P)’s booming popularity has hurt Sirius XM. Conversion rates continue to hold within the historical norm of 44% to 46%. The monthly churn rate is currently below the 2% average. In other words, the wider adoption of smarpthones and Bluetooth-enabled cars hasn’t held Sirius XM back. If anything, it may be helping. CFO David Frear surprised investors last month by pointing out that buyers of high-tech cars are converting at higher rates than are owners of other vehicles.

Finally, the Liberty Media Corp (NASDAQ:LMCA) tussle was never much of a fight. Liberty Media received 40% of the company for providing a necessary financial lifeline four years ago, and it made its intentions clear for some time about raising its stake to just over 50% to gain control of the company. Liberty Media now has that majority stake, and that makes it less likely to do something stupid that would sink its investment.

There may very well be a solid bear case to be made against Sirius XM, but these four points are either dated or invalid.

The article 4 Reasons a Sirius XM Bear Should Worry originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz owns shares of Liberty Media. The Motley Fool has no position in any of the stocks mentioned.

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