Sirius XM Extends Rally, Now Up Over 800% From Lows

Sirius XM Radio (SIRI) continued an impressive 3-day rally on Friday, leading radio stocks higher.

Those who bought into Sirius XM for 5 cents in February are currently seeing gains of over 800%. Investors drove the stock to near zero on fears of bankruptcy, but have reversed their opinion, at least temporarily, after a $530 million investment from Liberty Media. More recently the company has rallied on a corporate credit upgrade form Standard & Poor’s, which it received earlier this week. The upgrade boosted Sirius XM’s rating to CCC+. Speculators are betting on the stock today, driving it up by 15%.

As a whole, the Radio Stocks Index is ahead by 2.6%. It is now ahead of the S&P 500 by 31% this month.

While Sirius XM is undoubtedly driving the Index’s performance today, terrestrial radio companies should benefit from what appears to some to be a bottom in radio and television advertising markets. Earlier this month Viacom (VIA) CEO, Phillippe Dauman commented that television ad sales had leveled off in the short term, which is a good sign for traditional media outlets.

Saga Communications (SGA), Grupo Radio (RC), and Corus Entertainment (CJR) are all up today by more than 2%.

Cumulus Media (CMLS) and Entercom Communications (ETM) are hovering around their opening prices today, and Emmis Communications (Nasdaq: EMMS) is off by -8%.

As of this writing the Radio Stocks Index is approaching the top-10 performing tickerspy Indexes this month, up by 42.5%.

Investors can follow the Radio Stocks Index and view related performance charts and metrics at tickerspy.com.

Tags: CJR, CMLS, EMMS, ETM, RC, SGA, SIRI, VIA