Daily Commentary from SIR Features XM Satellite Radio.Business Editors CINCINNATI--(BUSINESS WIRE)--Nov. 7, 2003 Today's Daily Commentary From SIR features XM Satellite Radio (Nasdaq:XMSR XMSR XM Satellite Radio (formerly AMRC) ). Daily Commentaries are market-based reports that provide insight and analysis from a unique and unbiased perspective. For additional information about this report or to have it delivered to you via email everyday click on the following link : http://www.schaeffersresearch.com/addinfo . Drilling Down on XM Satellite Radio On Thursday, XM Satellite Radio (Nasdaq:XMSR) reported a third-quarter loss of $1.12 a share versus First Call estimates for a loss of $1.17 a share. Top line revenue growth was impressive, as XMSR posted a five-fold increase in revenues of $26.9 million from $5.6 million. What's more, the company recently announced that they passed a milestone by signing up one million subscribers. Click the following link to see the Daily Chart of XMSR since March 2003 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=8825 . XMSR has been a strong performer, posting gains of 443 percent since bottoming in mid-March. XMSR's technical strength has attracted call speculators. Currently, there are 106,291 calls open versus 55,317 total open put contracts. However, the stock's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) spiked sharply in front of its earnings report to 0.52, which ranks in the 86th percentile percentile, n the number in a frequency distribution below which a certain percentage of fees will fall. E.g., the ninetieth percentile is the number that divides the distribution of fees into the lower 90% and the upper 10%, or that fee level of the past year's worth of readings. While the SOIR on an absolute basis is somewhat on the low side, the percentile ranking The percentile rank of a score is the percentage of scores in its frequency distribution which are lower. For example, a test score which is greater than 85% of the scores of people taking the test is said to be at the 85th percentile. is intriguing in·trigue n. 1. a. A secret or underhand scheme; a plot. b. The practice of or involvement in such schemes. 2. A clandestine love affair. v. and may indicate that skepticism on XMSR is increasing in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with the stock's rally. Click the following link to see the SOIR graph of XMSR: http://www.schaeffersresearch.com/wire?ID=8825 . The other interesting aspect of XMSR's sentiment backdrop is the short-interest data. The equity's short-interest ratio short-interest ratio A ratio that is used for market analysis and is calculated by dividing short interest by average daily volume. Technicians use the short-interest ratio as a tool to determine market direction. stands at 9.45, meaning that it will take more than nine days based on the security's average daily volume. This is a very substantial amount of short interest that could fuel a covering rally. Given the huge potential of this new technology and the current sentiment backdrop, XMSR may be a name to place on your watch list. |
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