Singh's TPG-Axon Makes a Big New Bet On a Sirius XM (SIRI)
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Price: $29.70 +7.53%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.6%
Revenue Growth %: 0.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.6%
Revenue Growth %: 0.0%
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In its recent 13F filing out Monday, Dinakar Singh's TPG-Axon disclosed an interesting big new bet. The filing showed that the fund swallowed up 83 million shares of Sirius XM Radio Inc. (Nasdaq: SIRI) in the quarter.
This has made TPG-Axon the fourth largest holder of Sirius XM and it is the fund's third largest holding.
Sirius XM Radio has been a battleground stock for some time and while its stock has recovered from lows in the pennies, its heavy debt-load continues to be an issue.
Analysts are mixed on the stock, with 4 Buy ratings and 4 Sell ratings according to data at StreetInsider.com's Ratings Insider.
Citadel Securities, which rates shares at Neutral, recently said "although competition in the radio industry remains intensive and competition from online providers is increasing (especially with Spotify entering the market with a 15MM song library), there is no "true" substitute for SIRI's service." They see upside if the auto market recovery re-accelerates.
A re-accelerating car market may be exactly what TPG-Axon is looking for. In addition, with partner Toyota coming back on-line this should help new subscribers over the short term.
TPG-Axon stands to win big if it is right. Think of this way - for every $1 Sirius XM’s share price goes up TPG-Axon makes $83 million.
This has made TPG-Axon the fourth largest holder of Sirius XM and it is the fund's third largest holding.
Sirius XM Radio has been a battleground stock for some time and while its stock has recovered from lows in the pennies, its heavy debt-load continues to be an issue.
Analysts are mixed on the stock, with 4 Buy ratings and 4 Sell ratings according to data at StreetInsider.com's Ratings Insider.
Citadel Securities, which rates shares at Neutral, recently said "although competition in the radio industry remains intensive and competition from online providers is increasing (especially with Spotify entering the market with a 15MM song library), there is no "true" substitute for SIRI's service." They see upside if the auto market recovery re-accelerates.
A re-accelerating car market may be exactly what TPG-Axon is looking for. In addition, with partner Toyota coming back on-line this should help new subscribers over the short term.
TPG-Axon stands to win big if it is right. Think of this way - for every $1 Sirius XM’s share price goes up TPG-Axon makes $83 million.
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