Is Sirius XM (Nasdaq:SIRI) a Good Investment Now?

Sirius XM (Nasdaq:SIRI) is one of those stocks it seems are either loved or hated.

For those investing in the stock at its lows in 2009, they love it, as they will have gained over 30 times what they put into the shares.

Of course that leaves current investors with little room for error, with the margin of safety non-existent.

With some believing nothing can stand in the way of Sirius (and that's true because there are no direct competitors), one has to wonder why everyone isn't in the company.

The one reason is its enormous run, as mentioned above, and its dependence on the auto industry at this time.

While auto sales have picked up (which will bode well for Sirius this quarter), the question is of course, sustainability, as consumers have been leading the charge, which has to be coming from early tax return money.

What happens once that all dies down? And what about the future of Sirius with its direct reliance upon the performance of the auto sector?

Short term I don't think there'll be many problems Sirius will face, as all you have to do is watch the auto sales and know what the percentage of conversions to the paid subscription for Sirius are.

While fans of the stock throw out what appears to be outrageous numbers, as to how high the share price will rise, again, it's dependent on the number of new cars being sold. As the auto industry goes, so goes Sirius.

With that in mind, a number of investors who see the share price of the stock fully valued, are waiting on the sidelines for a pullback.

That could be a mistake in the short term, as if sales in the latest quarter result in historical conversion rates, the company could get a nice bump.

And if sales of autos continue to outperform in the current quarter, it could be months before shares of Sirius end up correcting.

As mentioned, we already know auto sales in the U.S. in January soared. That will help the bottom line of Sirius, but that is on the assumption auto sales will continue to be strong for the rest of the quarter, or at least equal to last year. That would still give Sirius a bump on January sales.

Sirius announced they're going to release their earnings report on February 15, 2011, at 8:00 AM EST.

Sirius closed Tuesday at $1.63, up $0.015, or 0.93 percent.