Sirius (SIRI) is a Strong Buy; Long Hold

Sirius is now free to act as one company. Only days ago Sirius XM submitted the certificate of ownership paperwork and other documentation to finalize the merger, which began almost two and a half years ago. This is a really good sign as Sirius continues its slow climb out of debt and the NASDAQ basement.

For over a year now Sirius has been routinely one of the top ten most traded stocks. In the last year it has more than doubled in price. The stock price had tanked following a merger between Sirius and XM and the massive debt Sirius incurred scared investors into believing the company wouldn't make it out. Now investors are taking back position on this "hot stock" which has garnished buy and hold recommendations Standard and Poors, Market Edge and Reuters. Even Schwab has them as a risky buy. But what is the risk here?

Today SIRI quotes at $1.52. For a few hundred or even a few thousand shares, that isn't very much money. The potential over the course of the next few years, however, is substantial.

Sirius has shown an increase of subscriptions, consumer satisfaction ratings and a decrease in the debt over the last several quarters. With the automobile industry expecting a much better year in sales, and Sirius getting a lot of that business, we can expect an even bigger rise in subscriptions and an even bigger chunk of debt going bye bye. And even more hopeful is the knowledge that even through a horrible economy, Sirius has only continued to thrive in the consumer department.

The recommendation is to simply buy the stock now while it is low and easily affordable and hold until it reaches above the five dollar range, then reassess from there. Because the stock is going to continue going up. Just have patience.

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