2/20/2017 – Sirius XM Holdings (SIRI)
Sirius XM Holdings (SIRI)
In my opinion, Sirius XM Holdings (SIRI) had one of its greatest moments in several years last week. It was disclosed that Berkshire Hathaway had accumulated an approximate half billion dollar investment in the company.
Why do I think that this is one of the greatest moments for SIRI? Well, when you have a "buy and hold a long time strategy" like Berkshire Hathaway typically does, it helps to basically remove some of the shares from the supply of shares in the float. There is a good chance that Berkshire will also increase their position in the company. In their most recent quarterly filing, Berkshire increased their stake in Apple by three-fold. Could they do the same to SIRI and basically remove even more shares from the float? You bet.
Compound Berkshire purchases with continued share buybacks from SIRI itself, and the supply of SIRI shares will start to become less and less. When there is not enough "supply" to meet the demand, share prices tend to rise faster.
SIRI - Long-Term Price Objectives
For long-term upside price targets, refer back to a previous article for SIRI I wrote a couple months back.
Specifically, look for the section titled "Upside Price Potential". Under that section, you will see a chart that has 2 different Fibonacci Extension Tools overlaid on the chart. The black Fibonacci Extension Tool calculated some high probability long-term price targets. Those price targets would be the 61.8%, 100% and 161.8% Target Lines from the tool.
The blue Fibonacci Extension Tool in the above update provides for shorter-term price targets, but we will take a closer look at some of those next.….
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