Circuit City Bankruptcy May Help Satellite Radio Inventory Levels 75 comments
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In news that for some is no surprise, Circuit City (CC), the second largest electronics retailer in the U.S., has filed for bankruptcy. The company plans to stay open for business through the holiday season, and in what seems an odd statement, it may actually help the situation for Circuit City, but also for several companies that sell electronics gear.
Consumer confidence is low, and everyone is watching each dollar more closely. Consumers are looking for deals, and knowing that Circuit City is in bankruptcy may spur value conscious people to shop at the retailer, and by extension move product. While I can not picture people buying any “extended warranties” (typically a money maker for electronics stores) from Circuit City, I do see a potential for people to take this opportunity to pick up gear at what they perceive as lower prices.
Circuit City stock fell to 11 cents per share before being halted.
“Without immediate relief, the company is concerned that it will not receive goods for Black Friday and the upcoming holiday season, which could cause irreparable harm to the company and its stakeholders,” Besanko said in the filing.
Circuit City Stores Inc. announced a week ago it planned to close 155 of its more than 700 U.S. stores by Dec. 31. The stores are spread throughout 28 states, including multiple locations in areas like Phoenix and Atlanta. It is laying off about 17 percent of its domestic work force, which could affect up to 7,300 people.
Consumers seeking retail deals may bolster sales of some electronics items, but the shelves may be more bare than people anticipate, because any product not already delivered may be relocated to other stores. For satellite radio, on-line stores such as SiriusBuzz sponsor TSS-Radio may see a benefit, as they offer great value combined with stability.
It will be interesting to watch satellite radio inventory levels at Circuit City.
Position - Long Sirius (SIRI), No Position Circuit City
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This article has 75 comments:
I am long. But even THIS is grasping for straws.
UGH.
These next 3 months can't pass quick enough. After that the refinance, RS and dilution issues will have been addressed, and we will know for sure if it was worth it to hold this long.
After that my long term Siri is done and will just fkeep focus on short/week trades... done well on that front fortunately. But feel one year out if we can see this dreadful economy turn even respectably pathetic and some things I have already mentioned in other posts as have many of you... life will be good for Sirius longs.
BTW I was long years ago in cell and pcln when similar events occured. Many longs who were in for a goose and thought all was lost eventually got their golden egg thanks in part to a RS.
Thanks for those who make this place worth visiting-- Cos, Shure, 163, rem, kill etc.
Did anyone see the two page color ad, section one of the New York Times on Sunday? I understand that there were also in other cities as well. Themarketing has begun. Hopefully it has an effect.
BMW contract was renewed to 2011. We needed that news to divert everyone from GM and Ford. But, I am glad Sirius is barking about something again.
Q3 CALL TODAY! 1974 Nixon yammered “ I am not a crook “! What will Mel have to say to us at 4:30pm today? I can hardly wait for the double talk and he-haw of old blather.
What ever Mel has to say today, it will not keep his loyal stock holders away from the December 18, Sirius love fest. Mel, we have something for you and it is not love…
Vote no rev-split
GOLMAN SLACH SHARES AT $ 68 , ANOTHER 12 % DROP FOR THE DAY
DOWN FROM $200 SHARE
BAD MOVE BY THE ORACLE OF OMAHA BOUGHT IN AT 115
I JUST HOPE GS WILL BE DOWN GRADED BY SOME ANYLIST WITH SAME AGENDA ,
SO MR WIENKES CAN START TASTING HIS OWN
POISON
I'LL HAVE ONE STRAIGHT ON THE ROCKS TONIGHT
People come here looking for true thought about Sirius.
But, Sirius pays people to post trash here.
Crooks, all of them just crooks! Like that guy 163888 wants you to belive Sirius did not try to get protection in aa RECO scam lawsuit to get a setment to protect Sirius from other stock holders.
Come on people. It is court proven raceteering! The Federal Judge ruled and bared the lawyers from practicing in thaat state for 5 years! These Sirius employees posting here whant you to be optamistic. What a joke!!!
Vote No rev Split
How sweet would a role reversal be? Ah, a guy can dream can't he?
Anyway...4:30 should be interesting. Got my fingers crossed. Although Mel floating those lower projections was NOT a good omen. Some people are saying it was a "head fake" on Mel's part to fool the shorts. But does anyone really think such tactics are necessary when we are THIS low???
Good luck fellow longs.
Come on Mel, live up to your rep!
SIRI LONG!
Maybe the "Oracle" was paying to much attention to Politics!
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With his support of Barack, maybe the tile should be "Oracle of Obama"
No problem in your posting all of your lawsuit .... thoughts...... I posted a link to help you understand the law that you and M. Hartlieb are seeking remedy from on a prior article: Its the RICO act of 1970, Racketeering Influenced and Corrupt Organizations Act of 1970. Not RECO....
hartleib1
Senior Member
Join Date: Mar 2008
Posts: 131 Friday, February 22, 2008
Judge to California lawyers: Don't come backTriangle Business Journal - by Chris Baysden
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: Don't come back [02/22/2008]
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RALEIGH - North Carolina public companies have one less law firm to worry about when it comes to shareholder lawsuits filed in the state.
North Carolina Business Court Judge Ben Tennille has barred the San Diego, Calif., firm of Robbins Umeda & Fink from practicing in the state for five years on a pro hac vice basis. The Latin phrase, which means "this time only," allows an out-of-state lawyer to appear in court for a particular trial even though the lawyer isn't licensed in that state.
The order came as something of a coda to a shareholder lawsuit, Egelhof v. Szulik, filed on behalf of a former Red Hat shareholder against members of the technology company's officers and board of directors.
Shareholder lawsuits are the bane of many public corporations since there are a host of law firms that specialize in filing them on word of bad news from a company.
In 2004, Robbins Umeda & Fink represented a plaintiff in a shareholders derivative case involving Chapel Hill-based Pozen. That lawsuit was dismissed in November 2005.
Press Millen, a Womble Carlyle attorney who helped defend Red Hat's management in the Egelhof v. Szulik case, hopes the victory his side scored will have a positive impact for corporations beyond the case.
"I think it's pretty serious," Millen says of the sanctions. "It's definitely a warning shot over the bow of out-of-state counsels about filing meritless lawsuits in North Carolina."
Sanctions against plaintiff
The order, which was issued Feb. 4, prohibits Robbins Umeda & Fink's lawyers from appearing in the state's courts for five years. It also bars Andrew Egelhof, the plaintiff in the case, from acting as a shareholder derivative plaintiff or a class-action representative in North Carolina litigation for five years.
The Egelhof v. Szulik complaint, which originally was filed in Wake County Superior Court in 2004, included allegations of insider trading and gross mismanagement at Red Hat. Defendants included Red Hat Chairman Matthew Szulik and board members Marye Anne Fox, former chancellor of North Carolina State University, and retired Army Gen. Hugh Shelton.
Tennille dismissed the plaintiff's claims in March 2006 due in part to Egelhof's loss of standing as a stockholder. The defendants later asked that they be awarded attorneys' fees. Though that motion was not granted, it prompted Tennille to examine actions taken by the plaintiff and the law firm.
Tennille asserts that the lawsuit was filed in a "needless rush to court" just 31 days after Red Hat restated its earnings on July 19, 2004. He wrote in his order that the case was filed without an inspection of the company's books and records, and many of the allegations relied on media reports and published analyst opinions.
Tennille also took exception to Egelhof being the fiduciary standard bearer. According to court documents, Egelhof was a 24-year-old Kansas resident when he responded to an Internet solicitation seeking a plaintiff.
While he had a degree in business administration, Egelhof had worked in information technology jobs at Kansas State University. His holdings in Red Hat amounted to 28 shares of stock worth $710.50 that he bought in 2004.
markbmark, Dhaaa, facts are hard to get around aren't they. By the way go ahead and keep posting the lies. Tell me when you have enough rope.
markbmark 229 Comments Nov 10 02:44 PM WHAT A SHAME
People come here looking for true thought about Sirius.
But, Sirius pays people to post trash here.
Crooks, all of them just crooks! Like that guy 163888 wants you to belive Sirius did not try to get protection in aa RECO scam lawsuit to get a setment to protect Sirius from other stock holders.
Come on people. It is court proven raceteering! The Federal Judge ruled and bared the lawyers from practicing in thaat state for 5 years! These Sirius employees posting here whant you to be optamistic. What a joke!!!
P.S. markbmark, I know you have not been here that long but you should know better then to try and test me on who is the lier.
In response to the comment you left against cos on the other board... the one where you said "Now go away and let people use this board" .....
I happened to notice that you are basically the only one on here that keeps repeating "DON'T TRUST A COMPANY THAT SUED ITSELF" and (As Cos already pointed out) you keep spelling RICO wrong.....
That fact by it's self makes me question where you are getting your facts from.... (although I have been this whole time basically... )
LoL
He's beginning every sentence with "So"
I think that even though this is really weak data that this is aiming towards what I have been saying this whole time.... Get rid of this debt and we will be good....
3rd quarter has historically been the slowest for SIRI.... all they need to add in the 4th quarter is 200,000 subs and they matched their estimates...... 4th quarter is historically their best quarter..... I think they will be a lot closer to their original estimates of 19.5.... Maybe a little under....
LoL I'm agreeing with you... I'm very glad you said it too.... To hear it coming from you right after I said it makes me feel a ton better LoL......
I'm just saying that this is what I have been saying since that proxy came out and everyone jumped ship and started calling Mel a crook, Then ended up filing a Lawsuit against him...... LoL
So, they have been hanging out together a bit... So, that means that their probably going to say things similar in a good quarter ... and so, as we said before... so, we're in talks with several banks in the most horrific credit environment we've seen in years.. and so, we wanted to take out that debt sooner rather than later. LOL
I was thinking the same thing every time Frear spoke..... That's why Mel had to identify himself in answering callers questions...
All in all, great subscriber numbers as the guys above said. 340K net subs beats my "worry" number of 150K more than 2 fold. I was worried about churn and they are on target with that. What's the problem then? Once the Feb debt is announced done and it sounded to me they were hinting that the May debt was also being addressed, their shouldn't be any problems in the foreseeable future.
Even bankruptcy of an OEM, if they remain in operation, doesn't seem to be a big problem, because of their existing revenue sharing contracts. Now lets see if their is anything in the filings before we start celebrating too much. The sub numbers being this high and them taking down end of the year #'s before the call, doesn't seem to make sense.....
ever so slight difference.... clueless.
On Nov 10 03:05 PM APPLE123 wrote:
> BAD MOVE BY THE ORACLE OF OMAHA BOUGHT IN AT 115
You just said that statement about the subscribers not making sense man.... does any of this that is going on make any sense??? .... lol
Im in for 20000 shares at .27 cents. See what happens. I couldnt resist. I said I wasnt going to hold over the conference, but I couldnt risk it, lost too much on this stock to miss any jumps on surprises. I will hold now till .25 cents it broken. I will sell when trend reverses.
DITTO ON BUFFETT, BAD MOVE. BUT HIS POCKETS ARE DEEP ENOUGH TO WAIT IT OUT.
We actually have 5 months to get above $1.00 .... Don't forget NASDAQ suspended the listing rule that a stock has to stay above a dollar until January....
I agree with you.... The stockholders should be benefiting... But...
Don't forget... When a company goes public.... it is to be able to raise cash quickly by offering stock..... (I know I don't have too tell you this but this is where my next statement is heading)...
As sad as it is, this is what SIRI is doing.... Using it's stockholders for what they are there for... To raise cash. You invest your money... they take it and run their business. It's up to the investor to decide if it's a good investment...
SIRI has a golden opportunity here....If they use their shareholders to get rid of the debt....
They have stated and now have proven that they are just a stones throw away from cash flow positive....
So here is what I am going to say.... once again...
If SIRI uses it's shareholders to pay off debt (Which I remind you, that's what a shareholder is there for... )
1.) They DON'T HAVE ANY MORE DEBT TO PAY OFF TO ANYONE ( It's not a refinance, where you have to pay another bank according to their terms)
2.) They will have positive cash flow (They have stated that they will become cash flow positive SOON, and so far have proven that their statements are true)
3.) They have positive subscriber growth.... (So far, they are beating their own estimates, I can't imagine a 4th quarter that has less subscriber growth than the 3rd , No matter how bad this recession gets... GM and F are looking like they WILL get the Bail they need)
Personally I don't see how these prices are justified or will be justified.....
And if they do reverse split..... There is nothing to short..... If you short a company with those numbers either
A.) Your an idiot
B.) You have insider information about the company that No one else knows....
That's My Opinion....... I think that a few others agree with it too.....
They just have more Numbers to back it up....
Not to be a stickler, but..... we have 6 from the delisting notice, 180 days. The extension of waiver of the rule ends, currently, on January 16, 2009. If the clock restarts, then a notice is sent 30 days from then, and then the 180 days starts. So delisting would be in Sept 09, unless an extension is requested for another 180 days accompanied with a plan to bring the stock price up over the listing requirement, which then would include a reverse stock split. If shareholders approve the RS, then it needs to executed before Dec. 31, 2009, as now written in the Proxy Statement. The company has plenty of time to take actions to effect SP before delisting is considered. All of the hurdles on 2009 debt will have been jumped......
My concern about the numbers is that they came out with a downward revision right before a surprising upside 3Q in net subs, leaving on 260K net subs needed to make their new number. 4Q in the past could easily have been 1M net subs for the two companies. Maybe the new packages are going to cause a higher churn. Maybe the higher priced luxury cars, which are also energy hogs are not selling impacting the number. I don't know what their seeing, but they did revise their net subs, knowing they had a good 3Q. Something isn't right........ IMHO I am not trying to be negative. I just want to know why they did the revision when they did.
As insurance....
But if you expect to short this stock back down to these levels your crazy....
I agree. Decent report. Jokers like Wall St24/7 wrote a ridiculously stupid article but reputable agencies like REUTERS spun it positive--which it was. They've got to do this financing deal asap--which will help the stock and make them less of a Wall Street whipping boy. Mel said in the call..."in short order" about the financing. Let's see if he follows through.
I went through with 10K shares and bought 5K more during the call--like you said, I couldn't resist. I think the bottom is in and will soon begin to trend higher. If shorts think this is it, soon a covering frenzy could begin. We'll see.
I think that this is the worst case scenario..... and that it won't happen... And yet SIRI will still have the excuse that they lowered their #'s because they were projecting a auto market slowdown....
Which would be perfectly reasonable!
Lower projected Subscriber growth on recent automarket news..... Make it look like it is very likely that you lowered your guidance because of that....
Then come out with better than expected #'s..... That's the way i'm looking at it.
by the way I agree with your statements above and also acknowledge that I, as a shareholder, have loaned this company way more money than I had originally intended.......
YES! That's what I mean... we as investors decide whether our investments are worth it and whether we want to invest more money to help protect our original investments.... No one has ever forced anyone to invest in a company....
I hope your right about that and It does make sense..... As s162 has said and I think we all agree, announcement of debt refinancing in short order will do wonders for investor confidence.... Its all about execution and doing what he says now.
And that's where I think people are wrong for backing up Hartlieb... They think that Hartlieb should overthrow the board here.... and that he will get all the money they lost back.....
And to answer your question about the Stock Manipulation..... Other like cos, s162, and 163888 have already cleared this up for me too so don't worry about it.... the manipulation isn't illegal, and there is really nothing he can do about it besides offer good news... which at the time is very scarce.... I'm sure there is either an article that has been typed while i'm typing or soon after that will clear this up more...
Hey. I think this Q report is is a decent surprise for the most part. If it proves to be received well next few days..a huge hurdle. Wed. they combine streams and if they can get that debt worked out in the next few weeks, they will show solid control of the future of the company/more tangible progress. I still think when TARP money gets to autos, there will be a nice pop. I say, let's go SIRI. Do something for your shareholders asap and lets get moving. We've certainly taken it "up the doo da" long enough! If .215 remains the low through Friday, watch for heavy short cover bottom recognition soon. As many of these things that can happen within a general vicinity of one another...the better for the long position.
Another thought. I wonder if the heavy stock price disparity (good will write down) was counted on all along? It could explain a few things...
I'm just curious...what would youhave Mel and Co do about MMs/SP? That's not how it works, with due respect to you. You've got to go read all the prospectus supplements to understand what the deal is here. Then you will see why the SP is what it is and what happens to it on a daily basis...IMHO.
My guess is that you can't think of anything because there is nothing to think about....
What do you want him to say more about...
He said that he and his staff were working very hard on getting refinancing done during the worst financial crisis ever!!! A WORLD financial crisis at that, and he restated that today ( so we know at least it is still in their thoughts) ....
He said that we shouldn't be worried about Net Sub growth or Churn rate and he proved it today.....
He said that the company with synergies will be cash flow positive by the end of '09, and he proved that the company was on that track today...( Already the synergies have been felt, with the revenue of $613 million)
Now tell me what else you wanted him to say... There was no news to come out...
Yes the only thing I can think that you will throw at me is that they could have worked on Advertising..... But you need a pretty good source of capitol to do that..... And right now (Sad to say due to the holiday season) SIRI doesn't have that cash to burn....
I left a link on the other article regarding Q metrics but I see someone pasted in above. Cash, etc...so disregard over there...
Hey, let's see what tomorrow brings. I think we just got the "one small step for man" tonight...now we hope the "one giant leap for mankind" isn't too far behind!
Good night and I salute all of our Veterans out there for all that we have, and for all that you've given.
My answer to that would be the following:
1. Be a little more transparent about the ugly financing to shareholders up front. It's all true that they released the deliterious info (albeit buried in the middle IMO), but something more akin to the Oct. supplement would have been helpful upfront (putting more of the financing explanation towards the top and in the open). Beside the the different legalese prospecti from the company, crazy Cramer actually gave us more valuable info than the company ever did.
2. Even one open letter to shareholders along the way would have been appropriate. Just to show support as we got our arses kicked week in week out. Many CEO's do this in times of company turmoil such as a stock price crash. One such comminication would have been nice and it could have even have come along with the Proxy, explaining the situation from the comcpany's standpoint.
That's about it. Then I would have felt more on an even playing field. I don't blame Mel at all in the big picture (which was my original position). Mel is Mel and he's a different sort of guy. But I think this situtuation is not exactly normal in many ways (doing an all stock buy-out with so much IB bondholder financing). So just a little more address to enable shareholders (as much as possible while still allowing them to make their own decisions about risk) would have been in order, that's my take.
But Mel has never really been an outspoken guy....
He always low balled estimates and told what needed to be told... Then showed it with facts....
In this case, I believe Mel knows what he's doing.... He told us what we needed to know and felt that he didn't have to sit there and repeat himself over and over again.... But that's my opinion and the way I view Mel..... We all have our opinions
XM cost us 4 billion!!!
Bad managment Crooks!!!
The Rev Split will be the end!
Here come the shorts and we are back to .45 cents againg.
Crooks all of them crooks!
I am here. I am not going away. You Sirius goons can bad mouth me all you like.
You have been pumping Sirius on Tylers logs for 2 years and everyone has lost money listening to you! I will not let you continue to sell Sirius unaposed. I will tell whay I know to be true and let you tell lies. Most people will apreciate a second opinion.
To much optamism here for to long!
Vote no Rev Split...!
Vote no more stock issue...!
Kick Mel out...!
Sirius is run by crooks
LONG AND DEEP IN SIRIUS....!
Said he needed a BUFFER...
Give that crook a buffer and you are giving him the ability to saturate your stock down to the value of Toilet Water!!!
Vote NO MORE STOCK!!!!
Vote NO REV-SPLIT!!!
Mel called a $4 Bilion Lose "GoodWill"!!! GoodWill? Can I have some goodwill in my bank account?
Mel called the lost $4 Billion "GoodWill"!
Value of XM 18 month before the Merger vs Huge debt the day of the Merger?
A good man would have said no merger. HE could have backed out without any cost! But no, he wanted to controle all Sat Bandwith and also take the company private.
Mel we see what your about now. We were all dooped! Your a nasy stinking CROOK!
Vote NO REV-SPLIT or he will have us shorted again!
Vote NO MORE SHARES or he will delute to the value of toilet water!
KICK MEL OUT!!!
Buffer? Mel said more share are needed for a buffer? Stock holders need some buffer in our bank accounts before we are going to give that crook any buffer!
Mel said he still can't figure it out. But maybe its the GoodWill.
COOKing the BOOKS to get EBITHA? How do you waist 4 Billion and still show les neg EBITHA? You cook the books!
Wow can this Crook Cook!!!
Vote no Rev Split
Sirius XM has endured heavy turbulence since the merger closed at the end of July. Subscriber growth has been hobbled by the slow economy, and Sirius XM faces almost $1 billion in debt that comes due next year
Vote NO REV-SPLIT or he will have us shorted again!
Vote NO MORE SHARES or he will delute to the value of toilet water!
KICK MEL OUT!!!
Mark man..... If you lost money in this stock because you listened to us then your an idiot
(I'm not talking about you personally, I'm saying that in response to you saying that we have been pumping this stock for 2 years and people have lost money because of us)
People shouldn't invest on what they hear on these blogs... They are simply here for people to agree or disagree with opinions.... Not to make investment decisions...
Yah know knowone buys stock because of a Blog.
That is why Sirius pays thousands to people to post optamism here.
LOL
Vote No Rev Split
Vote No More Shares Issue
Kick Mel Out
markbmark 2008
I was in phone contact with Sirius, Patrick Reilly Today; November 6, 2008 who retuned my call for inquiry as to his claim the Michael Hartleib Derivative Case was dismissed. Reilly informed me the case had been dismissed. However, I had to push him hard before he admitted the case was given leave to re-file and that action is pending. Reilly was very misleading in his press release and his response to me. Clearly, Sirius first response has been to cover up the deception with more deception.
After speaking with Reilly, my opinion is the plan for Sirius is to dilute, Rev-Split, and then short their own stock and use the stolen money to buy the company on the cheap and go private or sell. I have spoken to a lot of crooks and wheeler-dealers and Reilly is a spin mastering crook. Sirius is up to no good!
I also called Michael Hartleib today for the first time. After weeks of email I was pleased to finally talk to the "Crazy Uncle" as some have nick named him. After 20 min phone conversation I was spinning in a world full of deception previously unknown to me. People, this guy , Michael Hartleib could put Mel and Company in jail for a very long time.
If Michael Hartleib can get this case into a court and perform just a little discovery, truly life will change for Mel. Michael Hartleib has outstanding hard and factual evidence to show:
1. FCC collusion to dominate SAT bandwidth,
2. Hard facts never released about the Merger that show Mel knew XM would have filed chapter 7 within a few months and the FCC License requirement would have given XM to Sirius at a substantial discount.
3. Hard facts about the $600 million last min financing is the point that the deal should have been stopped to prevent stock holder and company loses. On this issue alone, Michael has a money trail of profiteering and RICO that will put Mel in Jail for years.
4. Hard and court proven evidence that Sirius attempted to evade liability for all of the above by bringing in a professional plaintiff and law firm to bring a class action lawsuit against Sirius (Sued themselves) and agree in an iron clad protection settlement that prevented additional stockholders from suing.
In Mike's spare time, he has traced two trading companies that have been used for massive Naked Short Trading Sirius via offshore and some US holding companies. The investigation continues to point back to Sirius and collusion with GS in a washed money trail. A little discover from a court suit will be interesting indeed.
The true Consumer and Stock Holder Advocate in Sirius is (in my opinion) Mike Hartleib. I owned a large east coast Internet service and was involved and prevailed in a TELCO suit that did not have half the smoke in the gun used by Sirius. Look out Mel, because Mike Hartleib is the mad dog that has a big bite and he will never let go…
Long, very long and deep in Sirius.
Vote NO REV-SPLIT or he will have us shorted again!
Vote NO MORE SHARES or he will delute to the value of toilet water!
KICK MEL OUT!!!