| anjan |
For those with an eye on the market, XMSR (XM Radio) is on the brinking of keeling over from a terrible business that is hemorrhaging money to the tune of $3.07 per share. And then, its actually paying dividends to its preferred shareholders!!
In a letter to board chairman Gary Parsons, Pierce Roberts Jr. Roberts (a Director that resigned his position due to catastrophic performance) said he was "troubled" by the company's current path. "Given current course and speed there is, in my view, a significant chance of a crisis on the horizon," Roberts wrote. "Even absent a crisis, I believe that XM will inevitably serve its shareholders poorly without major changes now."
What really amused me was the the statement from XM's CEO Hugh Panero who said in a statement that the company expects to reach profitability from its operations by the end of this year, with subscription revenues reaching $860 million. The nincompoop doesn't even realize that the problem is with the high cost of acquisition and gigantic customer turnover? This is like GM, Ford, and Chrysler giving 0% financing for "10 years" to make a sale and wondering why they don't make money.
Should be interesting to see how XM and Sirius crash and burn. :1: |
|
|
|
