Friday, May 19, 2006

Small Investors have no shot

We really don't. All we can do is buy shares of companies that are solid and have good fundimentals, or are a great deal. I've said it before and I stand by it with all my heart. Right now, Sirius stock is an amazing buy. It was at 6, it was at 5 and now that it's below 4 you would be an idiot not to buy some. Most investors are amazed that every day, with no bad news, analist downgrades or insider trading, the stock continues to decline. Most believe that it is all due to the huge hedge funds shorting Sirus stock so they can make insane long term gains. That should tell you that in todays market, as a small investor, you are so out of the loop, you should just give up trying to time the market. You can't. Oh.. and I just bought another 150 shares so now I've got 1000. Some day when Sirius is as big as HBO I'll be laughing my way to the bank.

4 comments:

Blake said...

Hedge funds are very scary!!! They have lots of power, and basically answer to no one.

I've been telling my friends since about 2002ish NOT to buy sirius stock. A couple of them tried to hype it up to me, and I never understood it. Now that lots of people have it I will agree that it is a very nice product, and worth the money that they charge. But how long will that last? With bandwidth everywhere increasing along with memory, I just don't see why people will continue to pay for streaming randomness. Now if Sirius satelites can handle "on demand" that would be a different story (they could pull this off with the sirius DVR, but there seems to be a lot of legal issues involved). To be fair, most of my hatred toward Sirius comes from the fact that they PLAY COMMERCIAL, granted not a lot of them, but just on principal I need to hate them.

trace said...

Not true.. you have them confused. Sirius plays no commercials on their music channels. I have been a subscriber since they started and that has never changed. I can't see how you think that bandwith will mean a damn thing in a car. Maybe in the far future when they have WiFi everywhere (giving us cancer) they will have car "recievers" for music, but Sirius is it for now.. XM is as well, but they have poor management so I'd stay away from their stock for now.

blake said...

I am 100% sure that I have heard commercials on Sirius. I am less sure that it was a music station, but thought that it was.

Why dont you think the bandwidth increases can be realized wirelessly. That is what sirius is already doing. As well as DirecTV, their car satellites are amazing, I'm surprised that there aren'r more pimped out SUVs with them. And HD radio is broadcasting I think. And when they remove the analog radio spectrum, all sorts of new technologies can be implemented. Lots of options besides wifi!

But to be honest, I really just have a personal hatred towards Sirius, though I will admit that they have a nice product. I would be buying Apples stock if i were you. Move over Dell!

trace said...

Now you're just goading me to prove your point aren't you. You know very well I'd never buy Apple stock because I actually believe that it is a bad product.

You didn't hear a commercial on Sirius. That's one of their selling points. XM maybe. I will say that the commericals on their talk channels bother me, but most of their channels are packaged in other places (CNN headline news, discovery channel, etc.) so omitting them would be tough. I can understand talk hosts needing to take breaks in their show though.

My problem with wiFi right now is that I can't get in my car and drive to California from here and never have a connection problem. I can do that with satalite. You mention DirecTv and that's a different story. HD Radio has it's probelems as well, technical and regulatory. I don't know about you but I don't like my songs censored by the FCC and HD radio will be subject to that.

Pay satalite radio is a technology that has a market and a niche that works and will for some time. Do you think HBO is going to go out of business to the likes of NBC and the broadcast networks? Nyet.