Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

This Week in Sirius XM Radio Inc (SIRI)

Things never get dull for the country’s lone satellite-radio provider. Shares of Sirius XM Radio Inc (NASDAQ:SIRI) moved slightly higher on the week, climbing 0.9% to hit $3.38. The media darling’s gain wasn’t as strong as the 2.2% Nasdaq pop, but there’s no point in complaining about a positive run.

There was more going on beyond the share-price gyrations, though. Auto sales for June clocked in strong, and that’s naturally good news for Sirius XM Radio Inc (NASDAQ:SIRI) down the line. Majority stakeholder Liberty Media Corp (NASDAQ:LMCA)‘s push for Time Warner Cable Inc (NYSE:TWC) may happen with Sirius XM playing a significant role. Weeks after striking a deal to broaden Sirius XM Radio Inc (NASDAQ:SIRI)’s reach, Ford Motor Company (NYSE:F) expanded the global reach of its SYNC AppLink platform with a deal in China. Let’s take a closer look.

Sirius XM Radio Inc (NASDAQ:SIRI)

Car sales are revving up
It was a good month for new-car sales, and that’s huge, since the sale of new cars with factory-installed satellite receivers is the lifeblood of new subscriptions at Sirius XM Radio Inc (NASDAQ:SIRI). Ford Motor Company (NYSE:F)’s U.S. sales soared 13% in June, just above the 12% that upbeat analysts were targeting.

Sales were strong for the company’s SUVs and flagship pickup trucks, but a major driver has been the smaller fuel-efficient cars that drivers are turning to as a way to save on gasoline consumption. This is an important move for Sirius XM Radio Inc (NASDAQ:SIRI), because it doesn’t want to lose subscribers who give up driving as a way to save on high fuel prices. Smaller, gas-sipping cars keep folks on the road and subscribing to Sirius.

Malone moves
It’s no secret that Liberty Media Corp (NASDAQ:LMCA) mastermind John Malone has his sights set on Time Warner Cable Inc (NYSE:TWC), and we know he isn’t afraid to shake his assets to make things happen.

There don’t seem to be any fears that Malone will dump Liberty Media Corp (NASDAQ:LMCA)’s roughly 51% stake in Sirius XM at the moment, but The Wall Street Journal argues that Liberty Media’s valuable stake in the satellite-radio giant may come into play here. The financial publication’s “Heard on the Street” column on Wednesday suggests that Liberty Media could potentially borrow against its stake in Sirius XM to consolidate Time Warner Cable Inc (NYSE:TWC) into its existing cable television assets.

Either way, this is a matter that Sirius XM investors will want to keep an eye on in the coming months.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.