Anyone for or against this stock?

When I first heard about it I thought it was a horrible idea. I looked into it. First of all I am not a pro investor but these were my thoughts. I shorted it at 16 now at 12.5 (up +.50 today) Who would pay 300 bucks for a new car radio then pay 10.00 a month to get radio? People are poor these days.


I saw they had an IPO a while back. Why? short on funds? I am going to cash out because I expect a short term rise in the stock. But then a big downfall.


Their first wave of marketing was poor. Now that they have gone mainstream they are getting a lot of press. Espn signed a deal for an expn station. They are signing deals with Ford so all new cars they sell have the XM radio feature installed. You can also have the 10.00 payment tied into your car payment. I have seen several full page adds in various magazines and newspapers. Their pub relations department is doing a lot of good work. Yesterday someone wrote XM radio is the best invention of the year. The end result is they have spent a ton of money and not sold many subcriptions. They have NEG earnings. They are projected to have NEG earnings again this quarter. Will they ever start making money? My bet is no or not much. I just don't see people paying for digital radio.


I am thinking once their little flash in the pan is over I will look into buying some put options. It says it may be hard to borrow shares however.


What are your thoughts?


thanks

brian