Q&A: Should I buy Siri or Ford Stock?
Issue by Carbonite: Must I purchase Siri or Ford Stock?
I have $ 2500 to make investments extended term, which stock must I buy Sirius or Ford?
Siri at two.34
F at 14.56
Greatest remedy:
Remedy by Warren534
For no matter what it is really worth, I project Ford is on the decline to at least twelve.80. I wouldn’t touch it on the extended facet prior to that.
I have no viewpoint on SIRI, except to say that I would avoid quite lower priced shares. They are usually reduced priched for a reason.
Create your possess answer in the remarks!
Let’s face it, Sirius XM is a technology from the 80′s and 90′s that relies on the high cost of entry into the industry (i.e.: satellites) to be their defense against competition but now that the analog TV frequencies are being reclaimed by the deployment of digital TV broadcasts there will be many communication providers that will leverage the existing infrastructure of cell phone towers to provide many offerings including national digital radio as well as WiFi to the car and the advent of high altitude communication platforms similar to Nasa’s Helios and the Navy’s high altitude blimps will obviate the expensive communication satellites replacing them with low cost, long duration autonomous aircraft that can be retrieved for upgrades. The barrier to entry in the market is about to be drastically reduced both by land installations and autonomous aircraft. But more importantly, how many people do you know of that bother to pay the $ 20 a month subscription or do they just let their car satellite radio stay on the demo channel.
Ford has benefited from the public disgust at the auto bailouts of GM and Chyrsler but time will heal those wounds leaving barely a scar. Overall, Ford has not made any significant inroads in market share over the past two years and their product line is still largely dependent on the F150 and fleet vehicles. Certainly good products but they were in no position to take advantage of their competitors weaknesses other than in the good will of the public. The recent disasters in Japan does mean that the competition from Japan will be limited in the next couple of years as they ramp up their production but it’s still a matter of products and markets.
I think Ford would certainly be better investment than Sirius but you’re really too late to capitalize on them being the only one of the big three not to take government bailouts and indeed the new GM is a far more attractive investment. However, if you don’t already have a balanced portfolio, such an investment would be a concentrated risk and you would be better off in a no load, low fee index fund.
Both of these companies have uncertain futures, but if I had to pick between these two I would go with Ford just because satellite radio might get run out of town by internet radio. Ford at least is doing well now, and should continue to do well.
If those 2 are the only choices, I would buy Ford.