Today is the last day in CNBC’s "Biggest Loser" series – for now. This is where we look at stocks on the S&P that did badly this year – but could be in line for a turnaround. CNBC's Erin Burnett had RBC Capital Markets analyst David Bank on to talk about XM Satellite Radio . The stock is down 44% since January – but it rebounded about 28% last month. RBC Capital Markets analyst David Bank was on “Squawk on the Street” – telling Mark Haines and Erin Burnett he’s bullish on the stock for the long term.
Bank admits: “Everything that could have gone wrong last year went wrong – regulatory issues, operational issues, management issues.” He attributes a good portion of the drop this year to lagging retail sales.
But the factor to watch going forward – he says – XMSR is in line for huge OEM ramp. Just this week the company announced Honda Motor will ship 650,000 cars with XM pre-installed. Bank said that every Hyundai in 2007 will carry XM as well. Kia Motors will carry rival Sirius Satellite Radio .
Burnett noted that no one she knows who tried satellite radio stays with it. Even Haines said that it came with his new car and he let the subscription run out. But Bank said that 55% percent of people who try XM’s 90 days of free service keep it. He’s not writing off the effect the retail lag is having – but he says his excitement behind the stock is the potential for XM to be standard in every car. And if satellite radio is boosting car sales – factory standardization is entirely possible.