SOURCE: FOOL.com
When Models Explode
By Rick Aristotle Munarriz (TMF Edible)
October 1, 2004
How many times have you underestimated a company's potential? You have probably done so a lot more than you realize. Too many times it's easy to thumbtack a company against the corkboard of stagnancy based on where the entity has been rather than where it may eventually be.
Let's consider XM Satellite Radio (Nasdaq: XMSR). When it was facing another massive quarterly loss last year, I warned about taking the company's business model for granite. It would be naive to sum up the potential market for the satellite-streaming upstart, multiply that by the company's $9.99 monthly subscription fee, and assume that was all the company would ever be good for.
Yet that's exactly what pundits were doing. It doesn't make...
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