Sirius Staying Power – Earnings Update
Michael Kudrna submits:
Per my earnings preview for Sirius XM (SIRI), I want to update my readers on what has since transpired. SIRI released earnings last Thursday and if you have read my earnings preview, you will know what I was looking for in this release. Overall, I am very happy with the earnings and conference call. I’ve been digesting these earnings and taking into consideration other factors to reevaluate my thesis.
Fundamentals are of importance to me, yet they are not the only factor I consider in my overall Portfolio Management Strategy. While we all wish that the irrational beast known as the market would consistently price stocks with respect to the fundamentals, history tells us that is not always going to happen when it should. Therefore, I also take trends, the overall market sentiment, and various catalysts (not necessarily tied to fundamentals) into consideration. Since I am active throughout the day, I also take notice of emotional reactions and try to dissect the market in a psychological manner. This method helps me to more accurately decide what action I should take and when I should take it. If I am right 50% of the time, that is a significant win. I let my winners continue to ride up while I shave off some shares to lock in realized profits. The key to my strategy is being very protective by cutting losses quickly when I am wrong. In doing so, I have much less ground to make up so my profits are not eaten up. As my loyal readers know, I have zero loyalty to any stock. While many investors will treat a stock like part of the family, I, on the other hand, will treat it as an acquaintance whom I have no problem giving the boot when they overstay their welcome. With that being said, let’s dig into the pertinent details of SIRI’s earnings release and conference call.
Investing, Long Term Investment, stock market | admin March 1, 2010
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