Satellite Radio Falls to Earth - Once overvalued market darlings, XM and Sirius are worth a second look

摘要

About a year ago, in the September 2005 issue of SMARTMONEY, I wrote about the prospects for the two satellite radio companies, XM and Sirius. I laid out my issues with the stocks in the first sentence: "Based on any normal valuation measure," I wrote, "the share prices for the two players in the satellite radio business appear flat-out ridiculous." A paragraph later, I noted that the stocks had a combined valuation of USD17 billion, despite the fact that the two companies were headed for combined full-year revenue of less than USD1 billion. Had I stopped there, I would now look like a hero.