[BC] Re: XM Radio stock action

[R J Carpenter]

To put things in a little more perspective.  In the Oct-Dec 2005 
quarter, XM spent almost $200 million on "marketing" and only about 
$30 million on programming.  So most of the expenditure has been 
buying customers including subsidizing receiver prices.  The customer 
acquisition cost eats up the first year's of subscription money. But 
after the first year, subscriptions are profitible - thus the 
prediction of positive cash flow by the end of 2006.  Even though the 
programming cost is only a small part of their expenses, it is three 
time as much as in the Oct-Dec 2004 quarter.  It's still a business 
that takes strong nerves (and probably a silver tongue to rope in more 
capital).

XM stock price, compared with 5 years ago, has done about as well as 
General Electric.  Somebody has Real Faith.  Maybe XM stock will go 
down enough Friday to disprove that last statement.

bob c.