2 New High Stocks: Sirius XM Radio Inc (NASDAQ:SIRI) & Sprint Nextel Corporation (NYSE:S)

Sirius XM Radio Inc (NASDAQ:SIRI) once again had a roller coaster day as the stock ended higher for the third straight session and made 4-year high of $2.51 during today’s session. The stock has gained 15.50% in the past one week including today’s gain of 7.40% to close at $2.47.

Volume has been amazing with more than 324.75 million shares traded hands, while yesterday’s volume stood at over 191.52 million shares. So what’s driving the stock higher? Obviously, the company continued to report impressive additions in its subscribers during the second quarter. The company added 622,000 subscribers during the quarter bringing its total subscribers count to a record level of 22.9 million. In the first quarter, the company had added 404,596 subscribers, which came ahead of analysts target and therefore the company lifted its expectations and now seeing total additions of 1.3 million new subscribers in 2012.

Should You Buy SIRI Despite Recent rally? Know More By Reading Trend Analysis

The company had been struggling to earn money since 2010 until 2010 – Almost a decade. However the company returned to profitability in 2011 and came back strongly with a net income growth of 1000% year over year.

So what’s driving the company’s subscriber’s growth? Well, it’s due to solid growth in the auto industry. Demand for Autos is expected to be higher after lackluster market since recession. This would surely drive the company’s business well.

However, investors are bit worried about the Liberty Media’s 46.2% stake in the Sirius XM. John Malone, chairman of Liberty Media bought bulk shares in May at much lower than the current price. Liberty Media is targeting to take control over Sirius’ business by acquiring majority stake. So there is uncertainty about the deal and markets don’t like uncertainty. So the stock may be trading at bit discount involving uncertainty risk. But, whatever could be situation, Shares of SIRI may jump even higher after Liberty Media reaches the deal to get majority control.

We have Shocking Report On SIRI, Find Here

Sprint Nextel Corporation (NYSE:S) moved up again on Wednesday and made 52-week high of $4.60, extending its monthly gain to 40%. On Monday, the company spooked investors by announcing a reduction in price of iPhone 4S by $50 to reduce its inventory and generate increased sales ahead of expected launch of iPhone 5, which is expected to be launch on Sept 12. The decision was somehow expected as demand for iPhone has been showing weakness as tech lovers are awaiting for 6^th generation iPhone.

Should Investors Buy Sprint Ahead of iPhone 5 Launch

Now, it would be interesting to see how Sprint’s competitors Verizon Communications Inc.(NYSE:VZ) or AT&T Inc.(NYSE:T) react to this price cut, which in recent quarters, have sold two to three times as many iPhones as Sprint.