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Sirius XM Holdings Inc. (NASDAQ:SIRI) has pulled back from its new 52-week high of $4.65 a share, amidst talk it could rally even further given the current wave of bullishness. Fueling investor interest in the stock is the fact that the company is slowly becoming a blue chip company as it continues to operate a monopoly in the satellite radio business.

Sirius XM Solid Growth Prospects

Analysts at Barrington Research believe the satellite radio firm could enjoy solid growth going forward given its performance in the recent past. The firm currently has an ‘outperform’ rating on the stock. However, the analysts have warned that the company’s growth prospects could be restricted by the fact that its service offerings will remain car-centric.

“Significantly expanding seasonally adjusted annualized rate levels have pushed subscriber levels to new records, and rising used-car additions are poised to offset some of the inevitable weakening in new-car additions that are likely to develop at some stage,” Barrington Research in a research note.

 High levels of new car sales supplemented by high penetration levels in these cars is expected to continue fuelling Sirius XM’s core business. Coming up with new programming channels for all sorts of musical genres is the company’s main play, as it looks to hold on to its unique position in the industry and fend off the threat posed by internet services.

 Return on Investment

 Sirius XM has curved a substantial amount of market share for itself in the satellite business having already attracted 31 million subscribers. While price increases have come into play in the recent past, Sirius XM is yet to experience any uptick in Churn as more subscribers continue to sign up.

The media giant has recorded 28 consecutive quarters of profitably a feat that is unique in its own right. Over the last few years, it has returned nearly $7 billion to shareholders through stock repurchases all but affirming its ability to generate shareholder value.

Sirius XM Holdings Inc. (NASDAQ:SIRI) strong financial base means it will continue dominating the satellite radio business for some time. In the recent past, it has suggested that it could be an acquirer all but affirming a bright future.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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