Does Sirius have a good business model? Depending on who you ask, I just don’t believe that Sirius or XM have a good business model.
I might be wrong, but both of these companies have been losing money since they first started. I have my reasons for not investing in Sirius, XM or ethanol. Investing in new ventures is always risky that just the way I think.

The Cost of Production

I really think to be a better investor, you need to know how much Sirius spent on Howard Stern. Well, managements you spent all the money on Howard Stern, but what about the shareholders. Did you ever think about the individual investors? Will Sirius or XM radio change radio? Yes, I think so, but is it profitable? I just think the cost to get NFL, Howard Stern are just too high to make it profitable.

How good is the profit margin?

How much does Sirius charge for each subscriber? How many subscribers does Sirius need to be able pay Howard Stern? If Sirius pay Howard Stern with it stock, then does Howard Stern sell it ASAP? As a investor these are the questions that you need to ask yourself; you can not invest blindly. If Howard Stern is eating all the pie, then what is left for investors?

Is the Business Model Profitable?

How long will it take Sirius to be profitable? Do not invest on hope because that like sitting on the sofa; and hoping you hit the lottery. I believe you can find stocks that pay dividend and is profitable. Companies such as Coca Cola (KO), First Data (FDC), JP Morgan Chase, and Bank of America are all good examples.