Wednesday, October 3, 2012

Consistent Up/Down Trend: Sirius XM Radio Inc (NASDAQ:SIRI) & Green Mountain Coffee Roasters (NASDAQ:GMCR)

Einhorn throws some more criticism Green Mountain’s way

Hedge fund manager David Einhorn again criticized Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) at a conference in New York. A year ago, he had publicly created a short position in the Green Mountain Coffee Roasters stock.

Einhorn was a huge draw at the Value Investing Congress, where he said that he would present four investment ideas. He started with critical comments on Green Mountain. His grouse against the company is that disclosures are few and that it lacks spending discipline. He also said that he feels that the company is “very exposed”.

Will GMCR Bounce Back After The Recent Slump? Find Out Here 

Einhorn’s Green light Capital manages $7.7 billion in assets. It has risen 13.5 percent in the first nine months of 2012.
Shares of GMCR continued to slid in Wednesday’s session and fell 3.37% to $23.19, extending its weekly loss to over 13%.

Sirius touches 4 year high on Liberty Media buyout Rumors

Yesterday, Citi analyst John Bazinet upgraded ‘Liberty Media’ as it is likely to buy out Sirius XM Radio Inc(NASDAQ:SIRI). This led to the Sirius stock jumping to a four year high on heavy volumes.

Just before market close, the stock was trading at $2.63, up 2.3 percent or 6 cents. It touched an intraday high of $2.68, the highest since July 2008.

Not only has Bazinet upgraded Liberty Media to ‘Buy’ from his earlier ‘Neutral’ stance, he has also maintained his ‘Buy’ rating on Sirius. According to Bazinet, Liberty Media has spent $1.4 billion to up its stake in Sirius from 40 percent to 49.6 percent and the media company will control half of Sirius by the end of the year.

He upped the price target of Sirius shares from $2.5 to $3. He also raised the Liberty Media target to $121, $27 higher.

The merger with XM in 2008 made Sirius the only company which provides satellite radio. But it faces stiff online competition from Pandora Media, Apple’s iTunes store and Amazon’s mp3 downloading service.

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