I don't know why so many people can't see the immense potential
there is in Sirius.  In my opinion, they are executing their business
plan almost flawlessly, spending up front to ensure a good profit in
the future.

Can't people understand the enormous investment required to get (and
keep) subscribers and therefore earn the associated subscription and
advertisement revenue?  Is there a way to make money in satellite radio
without customers?  Well...then maybe it's a good thing Sirius is
investing heavily in building their customer base.

Satellite radio is a business where there are huge up-front costs, but
the costs associated with providing the service to one customer is
(relatively speaking) not that different than the cost of providing the
same service to tens of millions of customers.  See the enormous
potential for profit with a large subscriber base?  Sirius is quickly
adding subscribers and it won't be long until they have crossed the
break-even point to become free cash flow positive; after that, each
additional customer means (eventually) even more cash flow in the right
direction.  This milestone is planned for the end of 2006, and I have
no reason to believe that they won't achieve it on schedule.  After
all, they do have a pretty good track record for achieving their
goals/guidance.

Now for a bit more on spending:
Many people can't understand and are worried about how Sirius keeps
taking in more revenue, yet somehow increasing spending even more.
While it is true that Sirius is launching a new satellite and making
many other investments to ensure they have the competitive edge, I
think at least part of the reason for the increasing spending is
Subscriber Acquisition Cost (SAC).  A large part of SAC is the cost of
producing satellite radios.  The way I understand it, the radios cost
Sirius more than they cost the customer - just like the cell phones
you get for signing a contract for cell phone service, so Sirius
doesn't really make a profit on a customer unless they subscribe for
over a year (SAC=$131 and ARPU = 11.16/month * 12 = $133.92/year).  Now
think about the cost of adding 600K new subs a quarter at a SAC of $131
each... At their present rate, that's at least 2.4M new subs a year
at a cost of $314.4M a year.  See how signing up more subs every year
can cause increased spending each year and how growing the business
costs money?  My point is, Sirius is simply investing up front and
depending on their customers staying around after the first year to
become the real money-makers, and if the customers are satisfied with
the content and quality of service-they will.

I feel a little like the Lone Ranger here though... To me it makes good
business sense.  Does anyone else see things this way?  Are there
problems with my understanding of the situation other than my not
taking into account the incredible short-sightedness of most stock
purchasers?  Notice I didn't say anything about investors?  I think
investors can see what I'm saying, and understand that profit will
eventually come, and that the potential for very good profit is high.