Sirius Xm Long Term Investment Project

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Date Submitted: 02/07/2014 04:14 PM

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Sirius XM

Investment Analysis Long Term Investment Project

Table of Contents

Introduction…………...………………………….………………………………...………3

Financial Statement Information………...…………………………………………........3-7

Barriers and Risks…………………………....……………………………………..…...…7

Repurchase Agreements……….….……………………………………………………8-10

Majority Shareholder Information…………....……………………….…………...….11-12

Conclusion………………………...……………………………………………………...13

Introduction

As a group, we have chose to valuate the company Sirius XM. Based on our research, we have came to an agreement that Sirius XM is a must buy in the current financial market today. In our report, we have analyzed financial and non-financial information to conclude that Sirius XM stock price is undervalued today and investors should buy and hold long term.

What is Sirius XM?

Sirius XM is a satellite radio service operating in North America. Sirius XM is the leading company in the radio industry today. They provide service to cover the United States and Canada. In total, “Sirius radio covers 3,717,792 square miles coast to coast”. Also, your radio will still work 200 miles off shore. Sirius XM radio can be provided at home, in vehicles, and on mobile devices. Sirius’s business model is to provide pay-for-service, similar to premium cable channels like HBO.

Founded in 2001, Sirius XM is part of the Radio Broadcasting Industry. This industry has been in existence since the early 1900s. The radio is still popular at homes and even more popular in vehicles. Also, millions of people daily use the radio on their smart phone. It is safe to say, that the radio industry has been strong since the 1900s and is going to be in existence for many more years to come.

Financial Information

Stock Price Change (%) | -4.89 | 31.38 | 33.06 |

|

Growth (%) | Last Qtr | 12 Mo. | 3 Yr CAGR |

Revenues | 10.85 | 12.08 | 10.21 |

Net Income | -15.60 | -86.18 | 50.90 |

EPS | 0.00 | -86.54 | 51.83 |

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RoE (%) | SIRI | Ind.Avg | S&P...