Sirius Satellite Radio (SIRI) will profit from CBS / Howard Stern settlement May 24, 2006
Posted by stockguru8888 in Uncategorized.trackback
We sold Generex (GNBT) with a 10% profit today and our pick for tomorrow, Thursday, May 25th, 2006 is Sirius Satellite Radio (SIRI). It hit a new low of the year today, Wednesday, 05/24/06. After hours, the news was distributed that Howard Stern and CBS reached an undisclosed settlement. CBS sued Stern in February, claiming that its former star radio star breached his contract with the broadcast giant when he moved to Sirius Satellite Radio Inc. The lawsuit said that Stern improperly used CBS radio’s air time to promote his new satellite show, which started in January. CBS also said Stern made plans with Sirius without disclosing them to CBS as his contract required. The settlement should be positive for SIRI. Sirius also reiterated its 2006 guidance and projected to have 6.2 million subscribers by year-end. This came on the same day when its competitor XM Satellite Radio Inc. (XMSR) trimmed its subscriber forecast.
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