Barrington Stays Positive on Sirius 161 comments
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Barrington analyst Jame Goss has rated Sirius XM Radio (SIRI) as OUTPERFORM in a note issued October 30th. The analyst feels that, “the satellite radio concept is viable and valuable, particularly as changes are made in the context of a single corporate survivor. Our bias on this stock remains positive.”
Goss does note that financial issues have generated increased scrutiny on the equity, but recognizes that the company has exchanged some February debt for common shares, and feels that this could be an indicator that Sirius XM is close to managing the immediate February 2009 maturities.
On the May and December XM debt Goss stated, “The second issue is $350 million of XM bank debt that comes due in May. Management feels these maturities can be extended. The other $400 million of maturities are more than a year away in December of 2009. This 1.75% convertible issue can potentially be replaced with 10% fixed rate debt.”
Confirming discussion on potential delisting and rule changes, Goss stated, “The NASDAQ has temporarily waived the $1 per share trading requirement due to the financial crisis, and SIRI’s sizable market cap appears to place it in a separate category given its roughly 3 billion share base. While reverse splits are not typically a desirable option, this might be one of the rare exceptions to that rule.”
Barrington seems to bullish on the concept of SDARS without going overboard. The closing note in their report sums things up pretty well:
“Armed with improving visibility along these lines, we are reducing our target values to a new progression beginning with $0.60 based on 2009 assumptions and $2.00 based on 2010. The debate appears to have come down to an issue of survival of the company and the industry concept.”
Position - Long SIRI
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This article has 161 comments:
I believe the calls will be adjusted because they are based on a per share price in lots of 100 , with the new strike price of $50. RS's as you suspect do not advantage any contract or equity positions. You would still be out of the money and if the share price is .30 then it would be 6.00 and the relation would still be 12% of strike price: .30 / 2.50 * 100 = 12%, and 6.00 / 50 * 100 = 12%. This would be my understanding of before and after scenarios. I actually think the calls have a tougher hill to climb after the RS, psychologically. The stock has been at 2.50, but 50 seems harder to get your head around, especially so quickly. I also think that is why the shorts play these companies right after the split because they can take advantage of investor psychology. Eventually the numbers are the numbers but at first its a tough road unless directly tied to a positive event.
let's see... Ba1 rated MGM Mirage just issued 5yr debt at 15%.... Caa1 rated SIRI (6 levels lower, only 4 tiers from "D" as in default) will borrow at 10%..?
unbelievable how clueless equity guys are.
I'm looking for an entry point too.....
I'd hate to miss a low if it jumps, but I don't see anything good making it jump anytime soon.
In fact, I'm a little hesitant about getting in in the mid to upper 20's. I think the teens are possible if this Q3 report is worse than expected.
I know you're looking to pull the trigger too.......you don't think it'll go lower after the Q3?
I wouldn't get your advice from MarkbMark.......
It is obvious that all of his well written posts are cut and pasted from some other source. The posts that he does actually write are confusing and are not factual. None of his hypothetical numbers make sence....He's working someone elses agenda.
cos1000 is the wizard here,,,,listen to his every word when trying to make decissions......
As for the share price you'll need to achieve after a split?? There's a million different scenarios. In the end it comes down to how well the company is doing..........
I currently need $2.15 to get even......At this moment, with no more dilution, SIRI would need a $7 billion market cap for that to happen.
I've given up waiting for that miracle.........If you wiped out the $1.1 bil due in 2009 with a magic wand and just made it go away, and then guaranteed $300 mil profit next year (which is not a guarantee) then at $2.15/sh SIRI would be trading at over 23x next years earnings........imposs...
My focus is no longer on 10 years down the road. I'm focusing on the companies operations.
Simply put, are they selling subs, and are they keeping subs??
The answers to those questions over the next 2 to 4 months will determine what they do with reverse split, share dilution, debt, and every other concern.
If business is good, the shares will take care of themselves.
Experts like Remor and Cos could probably speak better to what may happen after Q3. The price has been pretty stasis around .33 for the better part of a week now. I dont see it dropping much lower again unless the news is just horrible.
Im averaged in at $1.75 now and keep tossing extra cash in when I can just to keep lowering that and also at the chance that anything bought at these levels could return double the money if we see anything in the .60s. Might as well make a little back along the way.
I agree with you, if the business stays good, all we need to do is hang tight through the Feb debt. Thats why I continue to buy when I can. The recession wont last for ever and neither will the cars people are driving. Eventually everyone needs a new vehicle and will get a taste of what we already know about.
Sorry to see you lowering my level of respect for you.
Clearly we do not agree. But I shall not lower myself to speaking bad about you or your (bad) opinion.
Please vote no for te rev-split
Please vote no more shares
Please don't let Mel's deception fool you anymore, Kick him out.
I just noticed you posted about me as an answer to someone who has not even posted here today.
I guess you have set you days agenda on spamming me. Very child like of you.
I think you must be working for Sirius. "Siriusly Depressed" spams anyone who talks bad about sirius must be a Sirius Goon. LOL!
SD Man, get a life! Please!
Please vote no for te rev-split
Please vote no more shares
Please don't let Mel's deception fool you anymore, Kick him out.
Fed Judge Said that about Sirius ony a few months agoe!
Sirius Penny stock scam!!! Penny stocks issue huge amounts of shares and rev-split 2 or 3 times a year. It is the oldest penny stock scam on the books. Sirius doing this is why it was downgraded on "Incusistancy of Managment" aka suspevted crook sceeming!
Day trade all you can and get back! But vote no Rev-Split!
Vote no
Vote no Rev-Split
Vote no more shares
Sirius sued itself to enable protection from stock holders after merger?
Sirius was actually paying professional class action brokers to sue Sirius and settle. The result would have provided a class action protection agreement barring stock holders from make future make whole remedies.
All speculation of the Rev-Split, Mo stock issue should end.
But I will talk bad about Mel and bash the stock to provide what I think is the truth. Talking good about Sirius will NOT fix the problem. Maj Tom has a problem and we are Mission Control the stock holders.
NEVER TRUST A COMPANY THAT SUES ITSELF!
Sirius will hit .05 if Mel does not take some action and give out some information.
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
We don't want a law suit. We want recovery of the Stock. The RS vote added wood to a fire that was already burning. Some smart people had seen all this coming and wanted to stop it. Soon, it evolved into a conspiracy theory. Now, it is more of a reality than ever.
The event chain after the merger is damming for Sirius management. Folks see Mel involved in a stock deception plan to take Sirius on the cheap. On.. and on, we have come the point that an investigation is needed. A class action is a one way to get a full investigation and at the same time recover damages as needed.
We have time. Maybe things will get better. A little info from Mel
I would like to stop the Rev Split. But, I am not here to defend Mike H. I like some of his ideas and see he has exposed some things about Sirius and Mel that need to be investigated. Most of that will never go anywhere. The fix is in and it comes from way hi up. Just look how the SEC refuses to investigate Naked Shorts.
I don't care much about the inop-radios. But, did Mel say something about working with venders to put a chip in radios? I remember something about it from that Auto Interview last week.
Sad, I never did lean how to spell. But, that never stops me.
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
You're right,,,,let's just disagree....
I have no doubt that you're not here to, nor could you, defend Mike H, however, it's obvious your here to spread his message....
I'm not looking to speak about you at all actually, I was answering someone from yesterdays post.
However, I will have something to post about you when I see you spreading misinformation to people.
Your presents here is to campaign for someone elses cause. You are not here to objectively talk about SIRI.
I'm not going to allow you to influence people who are here for help to make tough decissions.
I have a great life and it's mine, you should get one too and start thinking for yourself.
LOL, good for you...
Now show your a man and stop with the direct atacks. So we can help people with your opinion and mine.
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
You might be right, after today it's pretty clear that everyone is waiting for something,,,,,,,,,only 28 mil shares traded and it rode .33 straight across.
163888,
You think they're looking to surprise everyone with Q3??
Man, this is a tough call. Either your right and they're going to report good numbers and the plan for the Feb debt, which should make the stock pop pretty good,,,,,, OR,,,,,,it will be another vanilla speach with average or lower numbers and no debt talk,,,,,,,,,which should clear a path to .22 cents.........
I'm looking for an entry point based on that decission,,,,,,
opinions??????????
If they thought they had something good to report, then why would they have just agreed to a convert at $.29 cents......?
I do not claim to be an expert like you guys. But it does not take someone like Mike H. to open my eyes to the fact that something is very wrong with Sirius Management.
-The numbers are all down hill since the merger.
-Bad financing on the day of the merger, no plan was in place.
-Bad use of media after the merger that failed to explain the financing.
-Penny stock scam technique is being used to fund the company, 8b more share and rev-split.
The list goes on and on. How can anyone defend Sirius at this point? Something is very wrong!
Wait for the 3Qs and see how bad the news. I bet it will all be designed to scare share holders into a yes vote. I see it on the way.
NOT CONSPIRACY THEORY - FACT A Fed Judge said something is wrong with a company (Sirius) that higher a professional to sue itself. It is in the transcripts of the case. That is not theory....
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
I know what it is like to be wrong. I was wrong about Sirius and own 168,000 ahares at avg of 2.55 per share. A rev split of 20:1 will wip me.
So please let me be wrong one more time and see this comany have great 3q report and finance the debt without a rev-split. I want to eat crow. I want to get on this board and respond to 100 posts flamming me for being wrong!
LOL
Anyone got any good news or a laph to share. I need it today...
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
as for my opinions-- Q3 will not be good. merger writeoffs, diminished auto sales, bad economy, a trifecta of bad news. and as i posted yesterday, why convert at .29 if Q3 will be good. keep an eye on GS numbers , it is fishy if they are similiar to actuals.
Im looking to buy no higher than .25 cents. I think it hit .20 cents so you wont be shocked to reach it again. Then it might test lower. Would add more there, and wait for the end of year run up. Might only get to .50 cents, but that would be a 1 bagger. Thats my plan, and Im sticking to it. .26-.38 I wont own this stock. If it crosses either direction, I will buy.
I dont want to be in banks over any weekend.
Wish I could solvage my 2.55 avg in Sirius. But I have not gutts for a $300K avg attempt in this market and the spread is to weak for endless partial moves
I am in Sirius to the end....
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
Karmazin : The opportunity exists for us to commercially (emphasis added) market an interoperable radio. Right now we have developed it. There's one in my office right now, which is an interoperable radio, which is a receiver that in essence has an XM component and a Sirius component sort of Velcro-ed together. So we developed that, and one of the things that we have the opportunity to do is to market it into retail stores as an interoperable radio, one (NASDAQ:ROIA) that would be priced attractively and be able to get the consumer both services. A radio that gets the best of both services is sort of attractive and again enables the two companies to not water each other down but to have a stronger service while competing with all of these other technologies.
The Real Questions will not be answered by any of that..... and they know it. That's why we haven't heard from them sooner. Instead we have gotten SEC filings, paying of some of the Feb 09 converts with shares. A total of 131.9M shares have been agreed to in exchange for $50Mil in Convert Equity, at an average share price of .397 cents / share. The other SEC filing of real concern is the Preliminary Proxy Statement, which among other things, asks for Shareholder authorization for an increase of Authorized Common Shares of 3.5 Billion to 8 Billion shares. It also asks for Authorization of a Reverse Common Share Stock Split, minimum of 1 for 10 and a maximum of 1 for 50.
The Execution of the Company's Business plan as defined by 3Q reporting and 4Q guidance, The Paying off of the company's 2009 Debt (Feb converts of 300M now 250M, the May Bank facility of 250 M and 100 M, and the Dec converts of 400 M), The Share Dilution Request from 4.5 Bil to 8 Bil, and the Authorization of a Reverse Split as already defined, are the issues effecting the SP performance. Pick One more Important than the other and you will have made an error in judgment......IMHO. The company's 3Q is only as relevant as them providing confidence building answers or business plans for All of the above if we shareholders are going to benefit in the short term
As an FCC Licensed Ham / Armature Radio Operator allow me to share a brief layman explanation of Interpretable Radios. Hams have radios (One Radio) that cover multiple bands all in the same box. Bands from hi freq 2 meters to low freq 120 meters.
A radio front end is tuned for a band (Freq Range) and one radio can have more than one band pass (Circuits switchable to cover different bands. Like AM and FM, not exactly the same, hence FM is a mode and also used in SATRAD. AM (Low band) and FM (hi band) are bands needing separate MODE devices and band circuits tuned for max reception.
The rest of the radio could be audio amplifier, RF amplifier, tuning AGC, and so on. But the hart of the radio is the band pas and band pas filters.
SATRAD XM and Sirius are in the same band. SAME BAND, a hi freq set separated by an imaginary line drawn by the FCC. The chips set or software used for each service is set to freq only for that service, XM, Sirius. The Band Pass (PLL, Oscillator) or what ever you desire to call it, can receive all the freq in the SATRAD spectrum with maximum and satisfactory commercial duty.
So, all that is required for Interoperable Radios is to have software in the radio that will tune the freq that is desired within the SATRAD spectrum.
Cable TV receivers now have downloadable BIOS updates to add and remove or rearrange channels. SATRAD Sirius and XM could do the same. Maybe they already do but will not tell anyone.
Mel has said new chip software could be put into radios. However, opening a licensed radio and giving out secrets on how to open up the band pass, set new freq is a risk that Sat TV leaned never to do again. Besides, who wants to solder in a 64 min mini chip on a flimsy PCB. The cost would be more than the radio. Downloadable BIOS updates is probably in the future for SiriusXM
I hope this helps. It is as easy as I can make it and not politically correct.
Please vote no Rev Split.
DO NOT READ THE FOOLS NEWS TODAY
Especialy if your still Pro Sirius.
World's Scariest Stock: Sirius XM Radio
www.fool.com/investing...
Oh my god this is bad stuff.
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
Once was a stock that fell like a rock as a flock of share holders invested in Glock’s.
As the stock fell a bitch name Mel became rich as hell.
Now Mel’s rock could not block the Glock’s as the shots came from Mel’s once loyal flocks.
Soon the flock had shot the rich bitch and the rock became the new nich.
But Mel started to smell because he was no more for he and his became poor.
As the nich made the flock rich they invested in Glock and other happy stock.
Thank you. Oh, thank you. Thank you.
Put that in your weekly report Sirius Goons… LOL!!!
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
markbmark, The point the financing deal was terrible can not for fact be blamed on Mel not working on it prior. As an example look at the financing deal Clear Channel had that was supposed to be in the bag. The fact is the financing Mel was supposed to have may have fell apart just like it almost did with Clear Channel.
Take care,
NVS
My Technical Analysis of Apple
Overview
I know many folks come on these boards claiming wildly higher prices with no justification other than plain speculation. I want to be clear that I will make some claims here that will seem incredulous, however I will humbly submit that I’ve done hours of homework and intend to justify my position with clear technical analysis. As a (mostly) technical trader (I prefer options), I make no real fundamental claims as to why these projections will be realized (I’ll leave that to others here), I only track the price action and momentum believing that the market will find ways to justify the inevitable outcome (e.g. “Good stocks find reasons to go higher, bad stocks find reasons to go lower”). I’ll also state that you should invest at your own risk and to make your own decisions as to how much risk you can afford. My final disclosure is that I am (very) long APPL calls (option positions set for positive price movement) and have a very bullish sentiment on this stock. With that aside, here is my opinion of APPL in the upcoming months.
Company Overview
Apple is a unique equity opportunity as the company has a significant cash reserve and consistent growth with a dedicated following in the consumer base. The beta being 2.62 implies that it’s volatility to market conditions is very high and thus it reacts to the overall market price movement in an exponential fashion. The market having recently bottomed (IMHO October 10th), is now looking for upward price momentum opportunities to recoup losses taken in the recent decline. Apple having a stable war-chest of cash and significant growth (26% this Q) presents a stable growth opportunity for investors in a market that has been relatively unstable. Apple (IMHO) also has a rather “cultish” following of investors as many high-net worth individuals can identify with the company and its ability to package and deliver products to market with such quality that they justify a premium price. Additionally, the recent release of the iPhone (IMHO) completely changes the landscape of mobile computing. With other companies releasing smaller cheaper notebooks (e.g. “Netbooks”) to offer a lower price point for consumers, they fail to realize that Apple offers the same capabilities (and a cell phone) for less than $200. I feel this revolution in mobile computing will be realized over the next year and then used for justification as to why the stock moved higher (for all you fundamentalists out there). Overall Apple is a very stable company with considerable cash-flows, and a significant cash reserve. This offers both immediate stability during uncertainty and the possibility of heavy growth in future earnings.
The Technical Analysis
The old saying “history repeats itself” is a mantra for technical traders. We analyze historical price movements and the technical indicators the preclude them. We then use this data to attempt to predict future price action to (hopefully) gain returns on our investments. It is clear to me that Apple is repeating a pattern seen during the last earnings season (please review AAPL from 01/08 – 05/08). The stock seems to dip significantly prior to earnings, then recover to about 85% of its prior value on the (mostly) good earnings news. Although the long term momentum is downward (consistent reduction in highs and lows forming a long term bearish triangle), the recent short term decline presents an opportunity for significant profits. We are currently at the bottom side of Apples rhythmic price action. The Fibonacci retrace indicates that the real bottom was $95 (I realize there were some short term deviations, this is insignificant noise in found in daily “panic” trading). The stock found support at this base ($95) forming a “swing point” during most of October 2008. We saw lows of $85, where critical historical resistance held up like a brick wall and highs of $110 where short term traders took profits. The recent trading range (up to earnings) established a “Bullish Triangle Reversal” pattern (minus low volume) that was simply awaiting a “breakout”. The short term low trending line (marking decreases in price movement) that started in early October was broken last week on October 28th 2008 (please refer to your charts). Although I realize this mimics a pre-earnings break out seen on October 13th, I would humbly submit that the 10/13 basing was a reaction to support levels ($85), and did not share the benefit of earnings growth confirmation. The recent rise in pricing is much different as the price has risen quite steadily (over several days) on positive volume rather than a sharp increase, then sharp decline where many traders find short term profits. The other significant difference of this recent increase is that the volatility index is reducing (rather than increasing) meaning that the price action of the stock is beginning to return to “actual” value. From October 10th to October 27th Apple was forming a triangular pattern derived from drawing a line (get a crayon) along the lows and another line along the highs. The significance of this pattern is that it indicates that investors are increasingly undecided as it swings above and below its mean value (IMHO $95). On October 28th Apple broke out of this reducing “swing pattern” at $104 and immediately rose to $112. In Technical Analysis we call this “breakout confirmation”. This fast increase in price movement combined with the bullish triangle formation and the historical price movement of 01/2008 – 05/2008, offers strong confirmation of future price action. The stock is returning to its long term mean of $125 bringing new highs in the $150 to $160 range over the next few months. Secondary confirmation of the mean can be seen on September 19th-29th as the stock found support in the $120-$130 range. Other technical indicators like the MACD, the Aroon, the RSI, the Money Flow, and the Stochastics offer strong proof that Apple has based, that the moving averages are moving upward, and that money flow is moving back into the stock. These signals combined with the recent break out lead me to offer the following predictions:
Apple Pricing Predictions:
11/15/2008 - 12/01/2008 - $122
12/15/2008 - 01/01/2009 - $150
Near Term Outlook
My feeling is that after these targets are reached, the stock will then stabilize for a few months and either resume its long term downward pattern or breakout of the pattern to find new highs. I will require more information and price action to make this determination. What is clear however is that at the current price of $107 the stock is significantly undervalued. I do see that some short term weakness (like Friday) may offer an entry point between $100 -$105, however I also see indications that the price movement Friday offered stability (a foothold) and that by Wednesday of next week we will be moving steadily higher.
The Hopeful Investor
My final commentary is that many investors that love this stock wait on the sidelines hoping for lower prices. I’m sure many of them will chime in and respond to this post negatively hoping to convince you otherwise. I would respectfully tell them that hope is not an investment strategy and that waiting for absolute lows (and highs) is sheer folly. As a Technical Investor you look to take advantage of 80% of the price action, risking 20% to short term volatility. These “hopeful investors” are the same folks that drive up the price dramatically as they panic to get in on the highs of the day and get burned by panicking and selling on the lows. Feeling disgruntled by their losses they come on these boards and trash the stock, then panic and buy in once the movement has already happened. They do eventually make money, but their short term lack of vision costs them 30% - 40% of what could have been made simply by trusting the technical indicators and ignoring the noise of short term movement. I can tell you this with full conscience as there was a time when I too was a “Hopeful Investor”. I have since learned (over 11 years) to trust what the indicators are saying, have faith in my decisions made calmly with the analysis, and not to be affected by the “drama” of daily movement.
Finally, the Conclusion
The technical signs are clear here folks. The stock is moving upward. I sincerely hope the data I have offered makes sense. I will be checking this post from time to time to answer any questions. I wish everyone the best of luck and hope you all take advantage of this opportunity to make money.
Take care,
NVS
You're welcome buddy. I really mean the advice honestly. I have high six figures in myself, so I put my money where my mouth is. If you can get in under $105 consider yourself very lucky $106 - $107 would be a very fair. I wouldn't wait past Monday / Tuesday though, the inflection "pass" is indicated late Monday afternoon / early Tuesday morning, after which there will be heavy movement upward. Good luck!
Take care,
NVS
P.S. On SIRI, I should mention that the recent upgrade is really an attack on G/S. Goldman has a heavy amount of puts on (Dec 20th expiration), these other guys are doing everything they can to stick it to them. :-)
So far so good with my personal "reclamation" project. A few good buys/sells and a little closer back. This week seemed to set up a nice trading range between .33 - .40ish. What I noticed the most is that the stock sems to be acting differently than before the .21 bounce and mini short squeeze. IMO, that's because it has attracted more daytraders since who do not fear this stock at these levels. That short squeeze showed me a few things. One, there are still signs of decent life to the upside--possibly on the right news up to .85 - 1.00 and then a huge crash. And two, I have a feeling "they" did not expect that activation bounce this early, but going limit down that morning pushed the stock down far enough to set off the auto buy programs. Which of course has caught the eye of bottom feeders with deeper pockets and it has been on ever since. I just think it's a different stock ever since.
The stock to me also seems to be shrugging off bad news easily. Of course the hedge short will always be looming and being attempted, but again, I think A. you have many less long-terms jumping since if .20 didn't scare you and you didn't jump, not much else will, so you're staying put... B. There are now the larger number of daytraders on the other side of the short sells to keep a better balance intraday and C. what bad news can really hurt this company SP that it hasn't already? Most of what is reported now by Rick A, et al, is the same lolipop crap that's been reported now for months. Of course it had more impact when the stock was in "drift down" mode because the vast downside was still available. .33 - .40 for most stocks means bottom of the barrel (esp for a large high profile company like SIRI) , so it's here--it's not as if it has another .80 or 1.00 to fall. Sure maybe it moves back into the .20's but as soon as it hits the next auto buy cover, it will spike back to .40 and depending on the news maybe higher any given time. There is just too much interest in this embattled stock now for it not to. Now that the "drift" is over (which most daytraders avoided like the plague until now), there should be plenty of action to keep the stock moving in both directions going forward. I in no way just see a further drift down, down, down like most of us put up with to get here. And to be sure...if the company does surprise with anything concrete, it will also surprise on the short squeeze. As said, so much of the bad news is out, what else is left? I say not much.
Another point possibly of note is the last 3 trading days they built in an exact .33 floor. So that shows there was a hard time taking it lower. The only other time they repeated and held a low for 3 or more days was @ 1.31 in august (4 days). But again, the "drift" was on then and that floor meant 0 (as we know now lol). This time it could actually mean something. Not that it won't ever go lower from here due to negative market conditions, etc.. but it appears this could be some hint at stability to the downside. 3 days does not a trend make, but worth watching for. Remember, what keeps a stock headed down is constantly making new lows. To me, that's one constant for traders that will never change. The absense of those new lows makes shorts get bored, want to cover and go elswhere where there is real downside action. I bought back in yet again yesterday @ .337 (which wasn't that hard since that's where it was all day pretty much). But I think when the stock is at lower range levels and at this stage of the game, it's a good strategy to be in over weekends because we're at the place now where ANYTHING can happen and any time...and upside = high, downside = low. .33 seems like a good fulcrum point to me. Because even a dip down to .23ish keeps you in the middle and ready for any unexpected upside news--and then you just average down and wait for the next squeeze. The 52 week low is .215 and they haven't even come close to testing that in 6 trading days. So we'll see what next week brings. A high news week with the election and other numbers. I think the ECB is meeting on the 6th--which if they lower their target again helps here...also the Brit CNBC guy who's been here filling in for a week, said yesterday end of his shift, he has heard the Brits will lower by 75 basis points.
If Q report is still 11/6, that's Thursday. I'm considering being a little long through it at these levels given my previous comments, and on the decent chance it won't be as bad as some expect (B of B could be a great equalizer and show positive subscriber response to the buyout). Analysts won't care about stock price at this point, they will just want to know if the company has a handle on the future. If they can prove that, it could be enough for better opinions to hit The Street. Esp. from Janco, who is waiting for Q to set new price target. (Don't get me wrong, I put little in analyst opinion, but not much else to sway the public at this stage).
My overall opinion on the SP is that is is setting up for that huge rally afterall. I'm happy to to making moves in the meantime, but I am now making sure I'm always in to some degree to be there when it hits. When, is anyones guess, but my sense is it could be this month sometime. And I think the magic number is .50. During any upcoming short squeeze, if the price moves above .50, it could close that day @ .95. Waay to many people will be piling in at that point. But be ready for the next few days after. It could close @ .45 again within a day or two from there.
...a trader's perspective...
Was thinking about you when I saw AAPL sky after that one down day last week. Good call when we last spoke and hope you made a nice chunk!....
I've been making some SIRI cash back working the short-term range of last week...a little at a time. Keep them on your board. I see a major short squeeze event in the offing, where before I thought that was off the table.
Glad to hear your making out. Yes last week was AWESOME! Cleaned up un calls for AAPL and POT. I'm dumping the POT calls as I don't trust the underlying commodity prices, but the Apple thing is a once a year opportunity to cash in big. I doubled calls on the drift to $105 Monday moning, sold some @ $110 (15% profit on calls), then bought in again at $107. I suggest 100 -120 calls between Dec. and Jan. if you like options. Take care buddy, I may bring some CAP into SIRI if they make earnings happen. Let us pray... ;-)
I'll keep an eye on it,
NVS
BTW your commentary on SIRI is superb!
Love to ya,
NVS
Ditto on your AAPL insight and all your trades. Thanks for taking the time to post. btw...SIRI beta is up to 3! Things could get wild!!
Take er easy...
I just saw a .30 spot for SIRI XM B of B, end tagging with a sell of Notre Dame Football...this during the Nortre Dame/ Pitt game (At very least regional NBC Sports in my market).....first ad I've seen so looks like they're getting on it....
Hope all is well man...
Had been a while, but I couldn't resist posting on our buddy Rick A on TMF his last few lolipop articles...he's now asking readers directly to go to caps and rate SIRI down...what a punk...
Answers to the Proxy Statement are the only thing that will significantly move the Stock Price. To make predictions at this time that the Best of Both is going to do anything short term other than assist them with COH to pay the Feb converts is absurd. This quarter's reporting does not have any of B of B in the numbers. So anecdotal comments and guidance is all we can expect. If I sound negative its because I don't want to get your hopes up on announcements for the third quarter call.
I too am a trader now, and will let you know when this strategy for me changes. I realize that as a trader and a supporter of the companies success, short term My goals on SP do not necessarily agree with many LONGS who are waiting for a significant event to bring the SP up. I personally want the stock, as a Trader, to go to .20 so that I can secure a new position in the stock. I know that is not what LONGS are looking for. As a historic LONG I understand that conflict. My thoughts are slanted to the bear side of the trade, yours is to the bull position. Be careful hear and take what I say with that in mind....... Having said that build your case for the upside between now and the 4Q and take your own best position..... The Market is full of opportunities while we wait to see if this company executes in next two months better than it has in the last 18. Good luck.....
It's nearing the time to call the local butcher for plenty of those real fresh, raw and bloody thick cut angus steaks...cause the dog's gettin real hungry...
I am not screwing around with Day Trading on this stock...... I am trying to make some money in other companies while I wait for this stock to make up its mind...
I posted that I liked DSX and NM as shipping companies and bought them both last Monday. DSX is up 17% from my entry at 14.20 to a Friday close of $16.63 and NM up 10% from my entry at 2.52 to Friday close of 2.79. In addition I also bought LDK solar and it is up 21% from an entry on Monday of 15.95 to a Friday close of 18.15. I will be closing out my position in NM so that I can be ready to get back to SIRI after the 3Q report. It was nice to see some "green" print in my portfolio, but this end of the month week was a good one for most of the market, so it didn't really take Genius..... just Action.
So Upthetailpipeagain....... keep berating my actions while I keep trying to get some of my initial investment back.... Good Luck
NVS
SIRIUS SHAREHOLDERS FIGHT BACK AND ACCUSE MANAGEMENT OF RACKETEERING. (RICO)
A group of incensed shareholders, over 500 strong and growing, have banned together and accused SIRIUS XM management of unjustly enriching themselves at the expense of the corporation.
A derivative suit on behalf of the Corporation has been filed in the United States District Court, Central District of California, Southern Division. Case number SACV08-00790CJC
Case accuses management of violations of the FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO), BREACH OF THE FIDUCIARY DUTY AND THE SHERMAN ACT.
This suit seeks to prevent management from further damaging its shareholders (i.e. the corporation)
with massive amounts of further dilution (8 billion shares in the fully diluted float) and as much as a 1 for 50 reverse stock split.
We are working to gain control of our company by seeking to remove current members of the board as well as top executive Mel Karmazin. Mr. Karmazin said in an interview on September 15th 2008 with Sarah McBride of the Wall Street Journal “Given SIRIUS XM low stock price Mr. Karmazin said he would love to take the company private.” But given the state of the credit market, “How do you find [the money] today?” If the company was generating positive cash flow, which he expects it to do for the full year in 2009, privatization would become much more feasible, he says.
Given Management’s history,
Locking their shareholders into the longest merger delay in history.
Preventing the Corporation from seeking alternatives or potential suitors.
Failing to commercially introduce interoperable radios.
Their insistence on going forward with the merger at any and all costs.
Consummating the merger issuing 300 million shares to the financiers of XM’s debt to be sold short on the open market.
Mr. Karmazin and the board have severely damaged shareholder value in violation of their fiduciary duties.
In light of aforementioned, it is clear that they have lost sight of their obligations to the Corporation and have breached and will continue to breach their fiduciary duties in the future. We, as a group will not stand for this and will use any means possible to prevent and preclude them from stealing this company from its rightful owners-we the shareholders.
Contact:
Michael Hartleib
(714) 927-5898
savesirius@gmail.com
Good news seems to always bring it down...
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
NVS
NVS
On Nov 02 06:55 PM killerkaul wrote:
> NVS...................... ! !
Thanks for pointing that out. I think your right about the "Confidence Factor" that investors are weighing in on with Mel's management since the merger. That's why I feel that even though the news will be good on Feb converts getting done, I question how long the "Good Feeling" will go if answers to the other over shadowing issues aren't addressed as I listed above. We are in the show me phase for this management team, as Mel himself has said. The fog needs to clear on this company's intentions before any meaningful and sustained redirection of the SP will take place. JMHO
SIRIUS SHAREHOLDERS FIGHT BACK AND ACCUSE MANAGEMENT OF RACKETEERING. (RICO)
A group of incensed shareholders, over 500 strong and growing, have banned together and accused SIRIUS XM management of unjustly enriching themselves at the expense of the corporation.
A derivative suit on behalf of the Corporation has been filed in the United States District Court, Central District of California, Southern Division. Case number SACV08-00790CJC
Case accuses management of violations of the FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO), BREACH OF THE FIDUCIARY DUTY AND THE SHERMAN ACT.
This suit seeks to prevent management from further damaging its shareholders (i.e. the corporation)
with massive amounts of further dilution (8 billion shares in the fully diluted float) and as much as a 1 for 50 reverse stock split.
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
Share Holders Join the SIRIUS XM RICO SUIT
Contact:
Michael Hartleib
savesirius@gmail.com
volume is very low,,,,,,,,,,
and these boards are silent,,,,,,,,,,,,,,
Feels like the calm before a storm.......I feel a chill in the air.............
Headline #1 -- " US Stock futures nudge LOWER "
Headline #2 -- " US Stock futures nudge HIGHER "
eenie meenie miney mo
Actually bro, We were right about the stock not going into bk, or that the company has a problem with the FEB debt. We just believed our CEO when he said no more dilution, and at .33 cents, who would have thought the equity had value still to dilute?If you listen, bro, we changed our opinions on this stock when the proxy vote was announced. I own no shares of this company right now. Do I still believe in the product? Absolutely. Do I think they will be cash flow positive next year? Absolutely. Will this stock have a run up? Absolutely. Will it be to over $2. No, it wont. But If I buy in the .20s and it goes to .60's I will have broken even on this stock.
So go f*** youself. Im not amused by your hate, or your childish attacks.
Any company that files SEC to massively dilute by expanding stock issue and also at the same time do a Rev-Spit deserves to be sued!
Dilution issue and rev-split is how the pink sheet stocks have been ripping people off for years.
Sirius is pulling one of the oldest penny stock scams on the book! Mel and company should be jailed!!!
Vote No Rev Split
If good then may POP else downside may not be much.
Still hopefull becuase of your following points.
Do I still believe in the product? Absolutely. Do I think they will be cash flow positive next year? Absolutely. Will this stock have a run up? Absolutely
I am in agreement on the market move particularly if Obama gets elected, I am moving all stocks to cash and waiting for a clear direction to unfold. I am hoping to get back into SIRI by end of the week, there will be a lot a volatility after a "relatively" calm week last week. Once the election is over and the new administration is known, which is what the market likes, stocks will move up in general as you have been calling for several weeks now. Good luck and I agree with your call on media stocks, they're not money makers just news fakers.... sad but true.
Once was a stock that fell like a rock as a flock of share holders invested in Glock’s.
As the stock fell a bitch name Mel became rich as hell.
Now Mel’s rock could not block the Glock’s as the shots came from Mel’s once loyal flocks.
Soon the flock had shot the rich bitch and the rock became the new nich.
But Mel started to smell because he was no more for he and his became poor.
As the nich made the flock rich they invested in Glock and other happy stock.
Put that in your weekly report Sirius Goons… LOL!!!
VOTE NO REV SPLIT
VOTE NO MORE STOCK ISSUE
I didn't realize you were so dependent on what a few bloggers think...... so sad for you. Just because I and others frequently post here, does not make us experts. It is you that attach those attributes to us. Most of us are sharing ideas and thoughts after researching the company that we are invested in. You on the other hand, think your doing research by reading our comments. That is really to bad and should teach you a lesson regarding your investment strategies or lack their off. The fact of the matter is, if you have been listening which clearly you haven't, we have all lost thousands of dollars on this investment. I currently do not own any shares of SIRI and, like Relmor, am looking for one last opportunity to buy back in to recover some of my losses. So I too, as an expert in recognizing trolls and whiners, repeat the sentiments of Relmor and what you might do with yourself.
Mel may be announcing he is installing “Pay Toilets” in all company area Wash Rooms.
The pay as you go plan will require .25 cent to unlock the door of each toilet.
The company board of directors said they would approve this move as long as they are issued special keys to bypass the door lock. The board stated, “We do not have any small change”.
Vote No Rev Split
If you are talking about dot com bubble then the reason was that suddenly thousands dot com companies jumped into the market but after the bubble burst only the good companies survived.
In case of SIRI its a monopoly.
What's up with the hate, Mike??
I checked the history of your comments and see you dumped your shares on Oct. 23...and a heavy load at that. So...obviously you're pissed. Don't you think we all are? Forget about Cramer. Of course he was right. He's an insider. He released info about the consequences of the deal financing to the public that the company never did--until last week..and even then they relaesed it to news outlets only for a few hours, then to tuck it away quietly on their investor page and Edgar. I doubt many people even read it or ever will. But as far as those here go, who just assumed that the short would take it all the way down here? Did you? Did we? No. Further, we all expected more of natural bounce back once the low was hit given a different set of circumstances. Who knew the exact ramifications of the financial meltdown? Who knew the contents of the Proxy was coming? Not you, not anyone here. So, dude, were all just trying to react to a game that keeps changing. The rules are and have been out on this one. I suggest you redirect your anger where it beongs...towards the company that took your money..not towards people here who are just trying to now, and always have been, anticipate the next movement up or down. It will bounce, it's just matter of when over the next 45 days or so. Just be ready as others are to pile in when it happens to recoup some of your losses directly from those who took them from you. It's as simple as that. No need for the reproach routine on this board because no one is to blame. Get it together man...see the truth.
Google has the Hartlieb thing covered LMAO....
If you think sueing the company will in anyway get your moeny back your wrong... first of all...
I think SIRI can get alot more and better lawyers to argue their own case.... and will eventually find a way around what you guys are doing....
Second... You guys are wasting your money prosecuting SIRI, and you are wasting SIRI's money prosecuting SIRI... LOL
I hope they shoot you guys down in a ball of fire... so the company can move forward.......
If not, I pitty you....
You're just next in line for ""UP THE TAIL PIPE"" to point the finger at...........
Here's his post from 8/18/08 blaming Cramer....
"I like how Cramer admits when he is wrong like it is OK. I am a general contractor. If I recommend a new type of roofing for you to put on your home and it starts leaking after you spent $20,000 you sue me for not knowing my business. Cramer does this for a living. He should know all the possibilities on a stock or he should not give his opinion."
Here's one from the same day where he blames Cramer AND his broker..............
"Your right Freep. Cramer is just a freek show. This is his business and is down -2.35%. What a idiot. I gave my broker at Merrill Lynch $26,800 when the market was down in April. He called me in May and said look how much money I made you when it went to $28,500 and now it is back down to $25,300. He made all the mutual fund pics. Just another expert that cant even make money when he is given money at the bottom of the market. Just goes to show no one looks after your money better than you."
Here on 8/06/08 he blames the government...............
"that this situation stopped being a joke a long time ago and has turned into such gross negligence that the disappointment in this branch of our political system may be unrecoverable." This guy took the words right out of my mouth. The FCC needs to be eliminated along with many other government jobs and positions. This country is tired of a government that is for only it self. We another Boston Tea Party. After the merger is approved [if it is approved] think they will have any trouble finding some attorney's to litigate the decision? I doubt it. Too many attorney's that need work so they make work for themselves."
And on 8/25/08 he's ASKING cos to tell him what to do................
"cos1000. So what is the bottom line. Stock will not go up until shares are bought back, debt paid down and subs rise and how much and when. Is news after labor day going to do anything? I wont sell but I am not convinced that this will not take a very long time and much more pain. Why are puts and calls up in the 20+ dollar range for Oct?"
Hey tail pipe,,,,why don't you take some responsibility for yourself for once.....................
If the company issues more stock, pays off the debt, then moves forward with positive cash flow, positive subscriber growth, and no debt, you would short it??
I hope you do, maybe you can start another lawsuit about that...
"SIRI is making too much money, I lost my ass AGAIN...."
LOL
Also, who here expected the company's lack of communication to it's shareholders? Who expected the arguably to some, consistent erratic public behavior of the CEO. Now there is a class action suit in the mix. This company now has it all surounding it. Which person here did you expect to be able to prognosticate all of this? I think you will have to admit no one. Sorry, but look at a 3 month chart and that will tell you all you need to know. They did this one perfect. It was taken down in the most perfect manner possible...always keeping just enough hope alive, then creating perfectly timed .10 drops. What you have here my friend is something that was impossible to defend without just plain not being in the stock at all. Anyone who even tried to be in this stock for any time along the way got hurt somehow. So again, think about directing your hate where it should be directed--towards the company and the bondholders, not those here on this board...
"1-50 you gotta be kidding me"
YOU bought the stock,be a man and suck it up.
If the stock had gone up you wouldn't be here thanking anyone,you'd be calling YOURSELF a genius.
I almost agree with you about the Law Suit being a waist. Clearly, we all know the fix from hi up is in on Sirius. Hell, Mel even lied to Congress and was caught in collusion to control the entire SATRAD spectrum. But “nota” was done about it.
Some Law Suits win, some do not win. But more often law suits like this linger around for so long and cause so much bad press that the company pays off just to make it go away. The key to recovery in a case like this is to be like made dogs that bite and never let go.
STOP THE REV SPLIT - All I want is to stop the Rev Split and force some action in getting this company financed properly. Mel has screwed that up and has no plan to fix it other than make share holders pay. MEL IS WRONG and we must STOP HIM.
Stop the split, get financed, get some good news. The SP will go to $6.00 over night. But not as long as Mel keeps driving it down.
Say what you will about the crazy Uncle Mike H… But, does anyone know he is also working and found the main trading company that has been passing the massive shorts on Sirius? Well, Mike found one that even obtained a SEC waiver to do the sorting on Sirius. More info will be coming on that soon. I am sure…
Vote No Rev Split
To answer yur post to me...I, like you am not long. I am trading the stock and have been or a few weeks. Just to be clear, the scenario to which I am refering is what will happen before the dilution and reverse. Before this happens, given the action I have now seen on the stock over the past few weeks since the bounce off of .21, I am convinced there will be a major short squeeze event before the reverse. Quite possibly even back to a buck...even if just temporarily. Too many people are daytrading and once again interested in the stock for just that reason. Whatever happens after that event you speak of, is something I will also deal with as a separate issue--once on the other side. If the short is on there, I will be in on that too...of not, I'll jump in long here and there. As I have said, I suggest you get a strategy in place based on the current/near-future conditions and look to execute it rather than doing the blame game around here. The latter goes nowhere and is not warranted. IMHO.
Just to be clear... I wasn't trying to bash anyone when I said that.... : P
I was just simply stating what I think is going to happen....
Everyone (But you and a few long time posters) so far think that this lawsuit will "Miraculously" save SIRI from this SP.... It will not.... at best, what Mark just said will happen....
A.) file for Bankruptcy Protection
B.) Pay the money... (But that's after wasting millions of your dollars fighting them in court)
A. they take our money and run. (Crooks do this and law suits get massive)
B. they spend our money defending to keep us from getting it back. ( As long as they don't get to spend it on fast cars and hookers, I like it.)
But C?
We force them to get the act together and we all win.
Vote No Rev Split
Ok, Siriusly up the tail pipe, what do you suggest current shareholders do? Sell at .33 cents and never look at the stock again? Are you that ignorant? Do you have any helpful advice? Do you know what happens before a RS usually? If your so smart, why didnt you sell at 2.75? Sounds like your dumb like me. Now im trying to make up for it with sound logic(playing the stock now, not the company)...and you are pissing on the only few people on here who are trying to fight our way back. Not good karma coming from you.
Sell you stock, get depressed, piss and moan about it, and get heartburn.
Go beat your kids, kick your dog, and slap your wife. Then get in your beat up pick up, drive the the local swill, and get drunk till you piss yourself? Is that better? Do you like me now?
You don't need "the old banana in the tail pipe trick"... just get your strategy together and execute man. We all got burned (for now). missing out on the eventual bounce would be criminal. Just do your due diligence now, watch, and stay ready for the squeeze...you'll be a happier person!
I know you didn't ask me but my .02 on the dow is for me, I don't care where it goes. I am back to full daytrader/very short-term mode with tight stops. For me, this market is like a ticking bomb and as you suggest, who knows what will happen to the downside. But staying dry each week allows taking advantage of anything up or down. Had I done that here, I'd be singing a different tune...but hey I just saw reason to believe in real time. My mistake, but then this one was the perfect crime IMHO. I will trust no company from here on in--which should keep anyone with the same strategy out of harms way going forward. Big diff between losing 1K/5k and 20K/50K.
s162
I was very surprised to see that half million share block on ARCA break down at .33. Breaking .30 is triggering some buys right now but with all the uncertainty I just don't see a good week for SIRI. If all we get is Q3 then their reporting and some B of B projections I, there will still be to many unanswered questions. The RICO law suit by presenting documents and some sort of "Sting" evidence of wrong doing is another distraction. IMHO. With their not being an early pay off clause in the Feb 09 Converts, I don't see how anything actionable can be reported now that will meaningfully move the SP. Even is B of B is the source of new revenue to pay Feb debt off, it needs a couple of more months to accrue the cash necessary.
relmor..
I have a hard time picking a bottom for the DOW Industrial Averages because they are the stronger companies in the economy. What a review of the long term chart shows is that there are decent resistance points at 7900 and change, and then 7500 and 7000 resistance down,but not as strong. The next real stopping point from 7000 is at 5500 where we were in mid 1996. We really have to take these numbers and apply an inflation factor because of the Greenspan years and all the liquidity that really got us to where we are now. Also remembe that 401K's and retail investors were a small part of the indexes where now all that retirement money is also in there to be reconciled. If these numbers are going to be reached, we already tested 7900 intra day, the reality of the financial crisis has to be realized in all industries. It is possible that we get there, but I would say more like 6500 if unemployment goes double digit and oil trades in the $30-$40 range. That is a total world stagnation event. No growth anywhere. Remember 6500 in the Dow means 525-650 in the S&P. These levels are possible, but would be bad, bad, times if this happens. I am more optimistic and believe that the government will implement "work programs" through the private sector and the need to rebuild our infrastructure. Also we will be getting out of funding the Iraq war,even if we maintain a presence. Alternative fuels for the Planet need to be produced and the social consciousness is moving in the right direction. Not by everyone, but enough to effect a change in direction, and with a Democratic, more liberal administration, these programs will gain favor.
The trick will to move the alt. energy programs forward with low energy prices. A monumental task.
They will attempt to take it down to where they can get the best run up. The feel good market run till end of December will be met with harsh reality in 09.
How much of a run do you think the DOW and other markets will make thru Dec.??
No worries. My point is your general animosity here belies the notion of happiness. As said, we all were subjected to the same master play where many variables got interjected. Nobody's fault really. And as stated, though being at the bottom looking up at the light is never a friendly place to be (for a long), I advise anyone who got out to keep the stock on your board since there is still time before the meeting for some high drama to the upside here. IMO, what got us here is highly likely to get bored at some point and will want to lock in profits. Which engages bigger daytrader money waiting and watching, and at which point, this stock goes back up (and fast). I've seen it happen too many times. The .21 - .44 move showed us all this stock is still capable (of that and more). It's that simple. Though it's of course cool to replace your losses elsewhere, it never hurts to get what you can back from those who took it in the first place.
As you say...not only do we owe China about 500B but we've also been flooding money over there. I've heard a few people (quietly) mention, what happens when those dollars come back home--not good. In addition to all the recent liquidity injections here, it is going to take a master Fed Chair and T Secretary to manage this properly from here. The inflationary risk starting as you say, anytime next year, is tremendous.
GWB increased our deficit from 5.7T to 10T on a 14T GDP. In these times, it will also be a neat trick to bring that down and still keep everything else moving forward and stable. The odds of us managing all of this properly are ostensibly thin--which supports your theory. We are in a floating mess and all we have is the "full faith and credit of the United States" behind it all. At least it's something but it ain't much to hold on to in tough times (lol)
Like cos1000 said, if it does get to your worst prediction, it won't be pretty for any of us all the way around...
It is amazing to see the power Nas MM's have. I was also surprised that support @ .33 was broken. I think they are starting to settle back in to the tight ranges, now @ .3117 - .313. I want to watch the next few days carefully. If they do again begin drifting lower, their strategy will be transparent and predictable. Keep the floor in for a few days to attract people who might think the coast is clear, then dip it like today. Same thing we saw all the way down. If that's the case, they will not be done just yet trying to retest .21
Given the action on this stock I watched today, there is no doubt in my mind that .30-.33 is staged resistance. I won't touch this stock until it retests its lows. .20-.21 was a strong bottom the Friday it was put in and patience is being exercised by those holding the floor now to take it their again. I am going to put in several buys starting a .24 down. This retest won't last long. IMO
I agree. That's why I dumped my Friday buy this morning right out of the gate. I think if the drift is on again, we should see the rest of the week in the .20's. However, tomorrow could be an anomaly becaue of the election. So many scenarios!
In that case, if the SP does drift to inhabit the .20's proper for a bit, your earlier prediction might hold up into the high teens as a spike down to create the next low/bounce...
There's a speaker on CNBC right now saying Obama winning tomorrow is already baked into the market...
siriusbuzz.com/merrill...
Shareholders Fighting SIRIUS XM To The Core (SIRI)
If you are one of the hundreds of thousands of investors following penny stocks and low-priced stocks such as SIRIUS XM Radio Inc. (NASDAQ: SIRI), then you will not be surprised to learn that more than 500 shareholders are going after SIRIUS XM's management.
According to a press release, the group is using racketeering laws laws under the RICO Act, breach of fiduciary duties, and the Sherman Act.
The goal is to oust management and to prevent further dilution and a possible reverse stock split. It may also prevent Mel Karmazin from being able to take the company private as some reports and speculators have discussed.
Based upon the horrible share price performance and questions over whether or not Sirius will be able to keep its stock exchange listing, it is really difficult to think that a large shareholder group won't be able to be ignored by the company or by the media to force at least some of the changes.
November 3, 2008
Below is a copy of the full release which was sent directly to us from the "Save SIRIUS" source.
SIRIUS Shareholders File Suit Against SIRIUS XM Radio Management
LOS ANGELES, Nov. 3 /PRNewswire/ -- The following is being issued by
"Save Sirius":
A group of incensed shareholders, over 500 strong and growing, have
banned together and accused SIRIUS XM management of unjustly enriching
themselves at the expense of shareholders.
A derivative suit on behalf of shareholders has been filed in the
United States District Court, Central District of California, Southern
Division. Case number SACV08-00790CJC
The case accuses management of violations of the FEDERAL RACKETEER
INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO), BREACH OF THE FIDUCIARY
DUTY AND THE SHERMAN ACT.
This suit seeks to prevent management from further damaging its
shareholders with massive amounts of additional dilution (8 billion shares
in the fully diluted float) and as much as a 1 for 50 reverse stock split.
"We are working to gain control of our company by seeking to remove
current members of the board as well as top executive Mel Karmazin," said
Michael Hartleib on behalf of Save Sirius and its members. In a September
15th 2008 Wall Street Journal article written by Sarah McBride, she states,
"Given Sirius XM's low stock price, Mr. Karmazin said he would love to take
the company private. But given the state of the credit markets, 'How do you
find [the money] today?' If the company were generating positive cash flow,
which he expects it to do for the full year in 2009, privatization would
become much more feasible, he says."
It is clear that management under Mr. Karmazin's leadership has an
agenda to steal this company from its shareholders.
Given Management's history of:
-- Locking their shareholders into the longest merger delay in history;
-- Preventing the Corporation from seeking alternatives or potential
suitors;
-- Failing to commercially introduce interoperable radios;
-- Their insistence on going forward with the merger at any and all costs;
-- Consummating the merger issuing 300 million shares to the financiers of
XM's debt to be sold short on the open market
Mr. Karmazin and the board have severely damaged shareholder value in
violation of their fiduciary duties. Shareholders have lost over 90% of
their value under Mr. Karmazin's leadership.
"In light of the aforementioned, it is clear that they have lost sight
of their obligations to shareholders and have breached and will continue to
breach their fiduciary duties in the future. We, as a group, will not stand
for this and will use any means possible to prevent and preclude them from
stealing this company from its rightful owners -- we the shareholders,"
said Michael Hartleib, on behalf of Save Sirius and its members.
Contact:
Michael Hartleib
(949) 795-0580
savesirius@gmail.com
--Locking the company into the longest merger delay in history;
Given that this is their first and only merger attempt, I don't see how one can say that they have a history of this. The DOJ and the FCC had something to do with this. Did the company hold back information requested from these government agencies so they could not proceed? What about all of the "Entities" that filed complaints and objections during this process, including Michael Harleib, didn't they cause some delay to the process?
--Preventing the Corporation from seeking alternatives or potential suitors;
What direct evidence is there or has been presented that Mel has not and the Board has not looked at every option, "beneficial" to shareholders in operating the company? Conspiracy theories without direct evidence?
--Their insistence on going forward with the merger at any and all costs.
This may be true but does not necessarily represent neglect of fiduciary responsibility. Not wanting to give Spectrum up to a competitor does not show lack of sound and responsible management. Eliminating you only competition in the Sat Rad industry might be considered by most shareholders as responsible management.
--Consummating the merger issuing 300 million shares to the financiers of XM's debt to be sold short on the open market.
This financing "Enhancement" to the convertible bond issue to keep XM from defaulting, has been the most damaging to the stock price and can be debated that is showed a lack of due diligence on the part of Sirius' management. Maybe a lawsuit should be filed against XM's management and its premerger B of D, for their lack of full disclosure relating to this debt and its refinancing status. This is the single most important issue filed requiring investigation and further disclosure by the company as to who new what and when. IMHO
Now the question is: How does this group of shareholders led by a shareholder, with a history of filing legal actions against the company, advance their agenda in the best Interest of all shareholders without doing further damage to the company and existing shareholder value? The claim by Save Sirius is that members of the B of D and Mel Karmazin have lost sight of their obligations to shareholders and have breached and will continue breach their fiduciary responsibilities. This lawsuit is being filed before the company has provided even its first quarterly report since the merger, and has not yet operated a merged company for a full quarter. We shall see whose interests are being best served with this legal filing........