$SIRI - Weekend thought -
Added 2024-06-14 20:14:06 +0000 UTCI am not going to lie, I have been fascinated by this buy from Buffett.
It has declined heavy since the start of 2023 from $8 to $2.63 now and is still struggling to find support.
It has lost the 0.618 Fib convincingly at $3.14 and the next test would be the 0.78 Fib at $1.78.
Fundamentally, this is a very strong stock:
PE: 7
FWD PE: 8
Net Margins: 14%
Dividend of 4.19%
But their Free Cash Flow trend has been a concern
Buffett continues to add here and he clearly sees something and the FCF does not concern him, I suspect he believes they can turn this around.....this is also a sector he has been in since the 70's, where he made incredible returns from Capital Cities by guiding the CEO at the time
I would not be surprised to see $SIRI buying back massive amounts of their own stock shortly at these multiples.
This is now on my watchlist because I believe there is a route back to $8 again but it needs to find support first.
