DALLAS, Nov. 15, 2004 (PRIMEZONE) -- TalkingStocks.com, a leading online investment destination, announced today that it has initiated coverage of XM Satellite Radio Holdings (Nasdaq:XMSR) with a rating of "Underperform". This report, compiled by Senior Investment Analyst Jeff Bishop, outlines the company's current business and future growth prospects. Mr. Bishop questions whether the company's growth prospects justify a current market valuation of $7 billion, given that the firm is still two years from reaching profitability.
Comparing the current market for satellite radio to the dot-com bubble of the late 1990s he adds, "A similar investor frenzy appears to be at hand in the satellite radio industry. While there is no argument that the technology is sound, and it may one day have a large enough subscriber base to turn a profit, we question whether investors have gotten ahead of fundamentals and are chasing this stock no matter the cost. Growth-seeking investors are still propping up news-fueled stock prices, but we caution investors to watch for a near-future reversal that will bring this satellite radio stock back more reasonable levels."
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About XM Satellite Radio
XM is America's #1 satellite radio service with more than 2.5 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville, Tennessee at the Country Music Hall of Fame, XM's 2004 lineup includes more than 130 digital channels of choice from coast to coast: 68 one-hundred-percent commercial-free music channels, featuring hip hop to opera, classical to country, bluegrass to blues; more than 40 channels of premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM was named Best Radio Service at the 2004 Billboard Digital Entertainment Awards, and Popular Science recently chose XM products for two prestigious "Best of What's New" Awards. As the Official Satellite Radio Network for Major League Baseball (MLB) and the Exclusive Satellite Radio Service for NASCAR, as well as the Official Satellite Radio Service for ACC, PAC-10 and Big-10 collegiate football and basketball, XM Satellite Radio is the industry leader in sports radio programming, offering thousands of live sporting events each year.
XM, the leader in satellite radio for the automobile market through partnerships with General Motors and Honda, among others, is available in more than 110 different car models for 2005. XM also is available in Avis rental cars and will soon be available on JetBlue and AirTran Airways. Additionally, consumers can experience XM over the Internet through XM Radio Online at http://listen.xmradio.com. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.
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Cautionary Language
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB and its quarterly reports on Form 10-QSB both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.