Vancouver PPM August 29, 2011 - November 27, 2011

Vancouver PPM ratings 2+

Re: Vancouver PPM August 29, 2011 - November 27, 2011

Postby hagopian » Mon Dec 12, 2011 11:31 am

Looking at the financial dire straits - Sat Radio is so far into the financial glue, they won't be around for much longer. Their churn rate is huge and they have made just about every mistake Cumulus and Clear Channel made - overspent by a TON.
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Re: Vancouver PPM August 29, 2011 - November 27, 2011

Postby jon » Mon Dec 12, 2011 11:44 am

hagopian wrote:Looking at the financial dire straits - Sat Radio is so far into the financial glue, they won't be around for much longer. Their churn rate is huge and they have made just about every mistake Cumulus and Clear Channel made - overspent by a TON.

TD Waterhouse just gave a Buy recommendation to the Canadian Sirius/XM, assigning it only Medium risk. They explained it as follows:
In our view, this is a niche service but is affordable enough that it should be
fairly resilient in times of economic downturn. In addition, we like the current business model as the merger
allowed the company to instantly achieve critical mass by combining subscriber bases and reducing
competition thereby lowering marketing and promotional costs as a percentage of revenue. While the current
financial leverage is high in our view, our forecasts indicate an ability for the company to ‘grow into’ the debt
over the next year, potentially dramatically lowering consolidated gearing. Liquidity remains a major issue for
institutional investors but alternatives to alleviate that are currently being explored by management.
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Re: Vancouver PPM August 29, 2011 - November 27, 2011

Postby hagopian » Mon Dec 12, 2011 12:16 pm

In our view, this is a niche service but is affordable enough that it should be
fairly resilient in times of economic downturn. In addition, we like the current business model as the merger
allowed the company to instantly achieve critical mass by combining subscriber bases and reducing
competition thereby lowering marketing and promotional costs as a percentage of revenue. While the current
financial leverage is high in our view, our forecasts indicate an ability for the company to ‘grow into’ the debt
over the next year, potentially dramatically lowering consolidated gearing. Liquidity remains a major issue for
institutional investors but alternatives to alleviate that are currently being explored by management.


Translation: Total guess on our part - and love the bit about GROW into the debt.

Blarney. Written by a Broker is my bet. Probably had people in Nortel, Bre-x....yada yada.
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