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Wednesday, October 10, 2012

Stocks Of Sirius XM Radio Inc (NASDAQ:SIRI) While That Of Monster Beverage (NASDAQ:MNST) Fall


Sirius XM Radio Inc(NASDAQ:SIRI) has raised its guidance for a subscriber gain of 1.8 million in 2012, up from its earlier prediction of a profit of 1.6 million.

It has also stated that it has added about 446,000 subscribers in the September quarter, finishing the period with a record of 23.4 million.

Mel Karmazin, the CEO said that the additions signify the best September quarter since Sirius and XM had merged in the July of 2008.

The firm is believed to have added 1.5 million subscribers in total so far in the year 2012. In the first 6 months, about 87% of revenues of Sirius XM came from subscriptions.

Shares of SIRI hit a new high of $2.76 in Wednesday’s session and closed at $2.75, up 4.56%.

In another news, shares of Monster Beverage Corp(NASDAQ:MNST) dropped on Wednesday after Stifel Nicolaus had reduced his rating on the energy drink maker, quoting the slow sales growth and the regulatory risks that are involved.

After years of growth, Monster seems to be facing a tough year, as Mark Astrachan, an analyst has noted. He has also observed that the regulatory risks remain for the firm, under the conditions that the New York’s state attorney general is probing into the marketing practices of Monster Beverages and several other energy drink makers.

Astrakhan has lowered his rating on the firm from ‘buy’ to ‘hold’. 

However, he expects the firm to achieve sales growth in the mid-teens through 2015, as the energy drink industry continues to grow in the US and abroad.

Energy drinks continue to b e a tiny [art of the carbonated soft drinks industry. It represents just 3% of total sales volume, as per the industry tracker Beverage Digest. However, while soda consumption has flagged in recent times, energy drinks seem to have taken flight.

Monster Beverages stocks dropped $3.11 to $53.63.

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