Last week, Sirius XM Radio (NASDAQ:SIRI) scored three positive sessions in a row making for a cumulative apprecation of 13.9%. However, instead of continuing this move on Friday, SIRI suffered a minor pullback.
Closing trade at $2.045 per share, SIRI lost $0.045, or 2.15% of its value. With 29.7 million shares changing hands, this session proved much weaker in comparison with the 52 million shares traded on Thursday, the 53 million – on Wednesday and the 68 million – on Tuesday.
As a result, the RSI took one step back coming in at 60.36, thus avoiding the overbought area. In this respect, traders will have to wait a little while to get a definitive SELL signal from SIRI. The latest MACD values, on the other hand, suggest that upside momentum might be on the increase. What is more, this trend has more or less remained sustainable following the bullish crossover in early-June.
While the basic technicals present SIRI as a potential grower, its fundamentals really provide a fair background to the case. As it is, the company’s quarterly revenues have been increasing for the last three quarters in a row, i.e from $744 million a/o Jun. 30, 2011, to $805 million a/o Mar. 31, 2012. The same goes for its current assets which have soared from $965 million to $1.34 million for the same time frame. As for the net income of $108 million recorded in Q1 of 2012, it is the company’s highest since Jun. 30, 2011.
Altogether, the positive development with regard to SIRI’s financial results for the last year is to a large extend reflected in the stock’s current market price. However, considering the value of SIRI’s assets and the number of its O/S, it is clear that the intrinsic stock price lies somewhere in the neighbourhood of $2.00 per share. The latter should be taken into account by all traders who expect SIRI stock to continue its bullish quest.
