6/17/2018 - A Sirius Push for Subscribers at Sirius XM Holdings (SIRI)

I received a very lucrative offer in the mail the other day. The offer was from Sirius XM Holdings (SIRI). Go ahead and click on the image to look at the offer. As the title mentions, they must be making a Sirius push for subscribers!

The offer was $99 for a 3 year subscription period. The $99 offer is for SiriusXM Select service. I am not sure if that package comes with Howard Stern or not. They are even waiving the reactivation fee of $15.

While I put less than 9,000 miles on my vehicle annually, I am still tempted to sign up for the offer. But only if the offer allows me to stream Sirius on my laptop as well and not just listen to it in the vehicle. If streaming is allowed in the SiriusXM Select package, then SIRI may have just added 1 more subscriber. I will be looking into the details this week and post my investigations in the comments below.

This offer sheet got me thinking - why is there such a push to increase subscribers at such a low cost? What is Sirius XM Holdings hiding behind curtain number 3?

While I might not be able to answer those questions, they did get me thinking. What is brewing over at Sirius XM Holdings? As the fleet of cars with inactive radios grows, so does their potential to re-acquire those customers and gain additional revenue. It costs SIRI no extra money to add new subscribers with inactive radios. So the incremental revenue that is generated typically goes directly to the bottom line and boost profits.

There is a negative to signing up users at less than normal fees. Your average revenue per user "ARPU" goes down. You can be sure that some analyst will point out the decrease in ARPU in the next conference call.

Well, enough about the speculation from the offer I received. Let's jump to the charts. I'm anxious to see what the charts suggest now that my $7.53 price target has been met ahead of schedule.

5 Year Weekly Candlestick Chart

This first chart is a 5 year weekly candlestick chart with 3 different Fibonacci Extension Tools overlaid on it. I've posted this chart before but want to provide an update on the status and comment on the next price targets that the tools indicate.