I just dumped Sirius (SIRI) at 5.86 a share. I realized that it’s overvalued and in the long run, probably going nowhere. I was all gung ho about the stock last year - I figured with Stern coming on they would get a major boost. I now realize I am wrong for a few reasons:

1. Stern is tired, and the woes of terrestrial radio actually helped his show. As Rolling Stone points out, he’s not very good when he isn’t railing against somebody. There have been major sales in December of Sirius radios, probably because of Stern fans. But Stern fans are either rabid and hardcore, or they are occasional. I was an occasional, and I suspect like other occasional fans out there, I have no interest in paying money to satellite radio just to hear his show. I predict that the number Sirius’ subscribers (and XM’s) will level out in 2006 and go no higher.

2. Satellite radio has no future. It’s time to admit it. My commute to work is about a half hour each way. Is it worth paying $12 for that? More importantly, it’s too late for satellite. The MP3 format will kill it. In my car, I have a Pioneer CD player with the ability to play MP3s. All I have to do is load up a few CD-Rs with hundreds of songs and I’m ready for the week. And get ready for the IPod in your car. With the ability to pick and choose your own music, why go to satellite? I think satellite will work well in certain places like bars and restaurants. But not homes and automobiles.

Ah well, such is the nature of technology. It moves fast. Ask the record and motion picture industries (and Blockbuster Video) - they’re a dying breed too.

Of course, this is my opinion and I could be completely wrong. It’s happened before, many times.

- Bill G