SIRI - Getting Sirusly Bullish

6 日前

Siri earnings are here and there are MANY reasons to be bullish.

Fundamentals

• Warren Buffet's Berkshire has been buying relentlessly over recent months.
  
  
• The stock is down 68% from its high in July this year.
  
  
• Siri's earnings have been exceptional for years. Tomorrow (31st October) is predicted to be no different.
  
  
• Gross margins of 49%, EBITDA margin of 29% and P/E ratio of 8.2 in prior quarter.
  

Technicals

• RSI has put in a higher-low & is giving us a glimpse of divergence. The price recently put in a lower-low, suggesting selling pressure is limited from here.
  
  
• From a technical perspective, SIRI is just about to complete a 7 year accumulation phase in a wedge pattern (yellow).
  
  
• When it does so, it will also put the finishing touches to an inverse head & shoulders (or cup and handle) pattern that has lasted 23 years. That head was a HUGE elongated structure, after the stock was teetering on the verge of bankruptcy in 2008/9.
  
  
• By taking the height of the H&S structure and applying it on-top (white arrows), you get an eventual price target (T2) of, that's right ....$10,100 a share. 370x from current levels.
  
  
• That T2 target also corresponds with the 2.0 fibonacci level.
  
  
• An earlier more modest initial target is the 1.414 fib, of $530 (19.3x). This coincides with it's prior all-time high and where the stock may find a place to rest for a breather on it's meteoric rise.
  
  
• An extended T3 target for the 2040s would land in the fib pocket (2.272/2.414) priced at between 40k - 80k a share.
  
  
• And yes. I'm deadly Sirius.
  

Summary
SIRI looks like it will be shining bright until at least 2030, and likely beyond.

One of the best value investors of all-time agrees (at a time when he is raising significant cash from Apple & Bank of America) amidst uncertainty & a transition of infrastructure.

Satellite communication companies are really about to kick into their adoption phase. We may all soon realise why Siri is a crucial part of that future.