Boston, MA 12/11/2013 (wallstreetpr) – Sirius XM Holdings Inc (NASDAQ:SIRI) is a satellite radio service provider. The company has been on an impressive growth this year and investors are buying into this growth. There seems to be nothing to worry about the company in the near future. The reasons for this are many and I’m going to take a look at some of these reasons.
First and foremost, investors should know that every single growth in SIRI, however marginal it may be, is appreciated. In the past decade, the company could hardly make a profit. In fact, at some point it was like the company was going extinct. Today it is turning profits quarter in quarter out and the same is expected to continue. What gives?
The company has built is future and it hopes to reap the fruits of its hard work. Over the past several years, Sirius XM Holdings Inc (NASDAQ:SIRI) has used every little of the resources it received from its own operations and external partners to build for the future. Its investment in customer enrollment has paid off considering that it now boasts nearly 26 million users. Also, it has recently launched a new satellite which means that it is not going to incur huge capital expenditure in the near future.
The free cash is now available for special dividends and share buyback, all of which have the benefit of returning money to investors.
Another reason that puts Sirius XM Holdings Inc (NASDAQ:SIRI) in good position into the future is its association with automakers and dealers. The company recently acquired Connected Vehicle from Agero which now gives it more capacity in going for the dollar in in-car system installation.
As at the moment, automakers in the U.S. are producing cars which are SIRI compatible. This expands its connected car market. The company is also in association with thousands of used car dealers which allows it to connect customers on used cars as well.
These are not just opportunities, but they are opportunities for the future and this means that the future is bright for Sirius XM Holdings Inc (NASDAQ:SIRI).