Sirius Reverse Split Only "to Satisfy Listing Requirements" 49 comments
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At the conclusion of the conference call Monday regarding the third quarter, Sirius XM (SIRI) CEO Mel Karmazin made a crystal clear statement relating to the issue of a Reverse Split. Karmazin stated that the reverse split, if needed, is “to satisfy listing requirements of NASDAQ”.
Thus, should the company get the share price above $1.00 in a manner timely with the NASDAQ requirements, there will be no need to conduct a reverse split. Karmazin requested that shareholders support the measure in the proxy.
Additionally, Karmazin noted that the additional authorized shares requested is to provide the company a cushion if needed. Mr. Karmazin has made it a point to avoid dilution as much as possible in the past. His statement at the end of the call seemed to indicate that the company is seeking a cushion, and he encouraged investors to support this measure as well.
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This article has 49 comments:
In a market like this, trying to make the Nasdaq happy is NOT in SIRI's best interest. Hey, it was the Nasdaq's total lack of control over 'Hedge Funds Gone Wild' that has driven the price to $.25 in the first place.
NO REVERSE SPLIT!!!!!!!!!!!!!!
It will absolutle wipe out the equity of the common.The reduced leverage of the smaller share position would make it impossible for anyone with an average of $1.00 or more to recover their investment. The stock will also be shorted big time after a split. Lets just hold on ,we have time enough for the pps to get back to a dollar. The bussiness has the potential to have the stock rise to over $1.00. AND if it doesent happen and delisting happens Siri could trade very well as SIRI OB. "OB" meaning"other Board" . Many other companys have been delisted gone to the OB for a while and done well enough to return to the nasdaq. Siri could do this. It is absolutely possible. So Tyler could you comment on this scenario?
This is actually exactly what we have been waiting to hear bro....
This means that if we vote yes, that doesn't mean it's going to happen, it will mearly grant us another 180 days of NASDAQ listing to get above $1.00 (Which me and cos already declared wouldn't be until next September due to the suspension of listing requirements!) .... Mel is starting to clear up alot of the issues surrounding us....
He stated once again that they are STILL working on the refinance deal....
They beat Subscriber estimates.....
And they beat revenue estimates.....
What else do you want to hear from the guy.... You guys are selfish, you want your money back tomorrow.....
grow up and let the man run the company, he knows how....
I don't think the lawsuit did anything to change Mel's opinion... 500 disgruntled shareholders out of 1,000,000 is a drop in the bucket, and I don't think they had enough (Or any) >>>CONCLUSIVE... evidence to accuse Mel and company of anything significant....
I agree with you about the lawsuit...... and as you said the RS is a tool in the box of options to manage the company... All this talk of delisting being OK is foolish... Their debt rating is already just above the lowest it can be and many institutions who are already restricted because of the SP. If you take them of the NASDAQ those institutions that keep invested for balancing purposes (mutual funds), would clear their positions entirely. This is the kind of thinking that supports a premature lawsuit on a management team that fully disclosed in their filings all the information as required. Mel could have talked more to calm fears but that would have had the price of the stock going down more rapidly IMHO.
The reality of the 11th hour financing's lent shares, filed in a prospectus dated 7/30/08 with SEC, was not understood by most including myself, on the SP as we have experience. That's not Criminal, its business. It is a factor that should be considered when investing in this company. OK I'll say it, CRAMER was RIGHT, and I apologize for bashing him because of my own ignorance. I am now not ignorant on how convertible arbitrage works, and neither should anyone invested in this equity or any other that uses this type of financing.
I am less concerned about the RS now that Mel stated Publicly why it is being requested. Its on the record during an investor conference call, not a half quoted remark to a reporter on the sidewalk in New York about taking the company private. Read the whole comment not just what is conveniently reported by lawsuit supporters. They are the one's being misleading here.
If anything, shareholders should have NASDAQ Implement this rather than having Mel do an RS. ALL common stock shareholders are wiped out with an RS.
Economy su--s as Mel said, Wall street has to keep Companies alive.
NASDAQ Suspended the listing requirments until Mid January.... And SIRI has not been given its "Official Notice" yet... So when January rolls around... SIRI will be given its official 30 day notice, Then we have the offical amount of time to meet requirments... And THEN (If we vote Yes to RS) if we need to SIRI will file for an extension.... But thats where the RS comes into play Mel wants it so he can file for the extension if he needs too...
In order to file for the extension you have to have a plan ready to show to NASDAQ that you can get your Stock to meet Requirments
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!
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!!!
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
Tyler - " Mel made it crystal clear , the RS is only to avoid de-listing " ..." Mel " and " crystal clear " in the same sentence , is an oxymoron
Debt -- Ok , so we miraculously pay off the 1.3 B debt in '09 ...totally .....by the end of '09 , Siri will accrue ANOTHER 300 M debt because they operate in the negative ........and '09 is NOW projected to be break even , instead of profitability that Mel was " crystal clear " about , last time he conducted a seance
I have ONE MOLECULE of optimism left in Siri , and that is the S&P has a one year target of 2.00 ............That's it
Siri's reports are worthless , because they omit anything and everything that could possibly hurt the numbers , and they cook every single stat , any way they can , to look better ......and they C their A by saying , " We believe " before supplying their finagled numbers
Siri should sell / lease the U.S. government 2 or 3 channels for a billion bucks , and get out of this mess once and for all ....with NO RS and NO dilution ............This is so obvious it is rediculous
SELL or LEASE , the U.S. government 2 or 3 channels for a billion dollars , and get out of this mess ........This is so obvious it is rediculous ......Do yourself a favor , and forward this directly to Mel , so you can get a promotion , and maybe I can get my life savings back !!!!
I agree on NASDAQ extending the rule waiver for 3-6 months, reassess and do it again if the economy doesn't improve. It would not precedent setting. They suspended this rule before as a result of the tech bubble in 2001. All other criteria being met, why would they want to loose transaction revenue on 64 M shares / day on SIRI or all the other companies struggling. Again it is not a precedent setting policy change to support member companies..... After all this isn't just happening to SIRIUS XM........
To those of you playing around by selling your main holdings and buying them back in the hope of buying them back at a lower price, you better watch out we are almost half way through the 4th quarter. I would not be screwing around at this time. If you believe the company is going nowhere or going bankrupt then sell and stay out that is more intelligent then those of you who are messing around buying and selling your main holdings at this time, because I believe if it moves up you wont have time to get back in to save yourselves from major losses.
my opinion , it's imperitive we get that extension.
Stock Holders must see this FOX NEWS video!
www.foxbusiness.com/vi...
I agree
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!
Mike stands up for stock holders and corrects the record
As I said... SIRI is Wall Street's whipping boy. So many insiders, media writers, etc...are salivating to see this deal Mel did fail. This is why Mel needs to do this new financing asap. That will shut them up at least temporarily.
IMO today's action says volumes about how carefully this stock is being controlled and yes, even cared for. It shows how artificial this overall takedown has been as a whole. And optimistically, it also shows me how ready it is to correct (which will in turn be of the same machinations that brought it down). We're close to capitulation. They will start the move at the time and place of their choosing...I'm in until then and adding to my position.
On that like SiriusShortKiller posted, The news anchor called it
SIRIUM/XM RADIO.... SHE DID IT TWICE LMFAO!!!!!!!!!!!!!
700 strong LOL 700 out of 700,000,000 were rolling now boys....
This guy didn't state anything that he actually had evidence for...
The only thing he stated was he lost money and he wants someones head LOL !!!
3mo LIBOR down to 2.175...
A brief history of 3Mo LIBOR
In Sept. 1989 it was sky high @ 9.125
It slowly declined subsequently until Jan. 1994 @ 3.250
Then it started to rise again until Jan 1995 @ 6.328
Then another slow decline until April of 1999 @ 4.993
Then a rise until Sept 2000 @ 6.816
Then a calculated drop until March 2004 @ 1.1107--THE PERIOD LOW
Then another increase until June 2006 @ 5.5085
Then a decline until June 2008 @ 2.7654
Then the recent kick to Ocober 2008 @ 4.0586
And the present 2.175
A few historical trends I notice.
1. Any time the rate was in a decline period, the best differential between Nov and Feb was only .6 lower and in several cases the rate either stayed the same or went slightly higher. The exception to this was 2007 when it fell 1.8 from Dec 07 to Feb 08.
2. Currently we are part of a decline period since June 2006.
My take is that aside from the Oct 08 spike, it is still most likely is headed lower for another half year (esp. considering all the liquidity now in the system). BUT. SIRI only has until Feb. It may revist the 2004 low but most likely not until mid 09. History shows that if there is a decline between now and Feb, the probability is at best .6 (throwing out the 1.8 anomoly) and average about .3. Considering SIRI's doing this deal sooner than later can only help all parties (shareholders and company SP and market cap), I say DO IT NOW!!! Returns down from here are negligable and by waiting until the end (Feb), you do also risk it being higher from here. I think this is a more than logical entry point for the deal to get done. IMVHO...
Trend Update
Dow/S&P Trend since October bottom..
10/16/08 intraday low 8,197.67 S&P 865.83
10/21/08 intraday high 9,284.55 S&P 985.44 - 4 trading day span
**4 trading days trend down
10/27/08 intraday low 8,143.59 S&P 846.75
11/04/08 intraday high 9,653.95 S&P 1,007.51 - 7 trading day span
**5 trading days trend down
11/11/08 intraday low 8,560.71 S&P 884.90 (today)
?
Question is:
Do we revisit previous 2 lows tomorrow or is today the higher low and start the next climb back up to mid 9000's? Worst case, tomorrow should be the end of selling, then a set of up days...
In the previous trend sequence we made a slightly lower low but also a higher high. What we'd all like to see is a higher low (like today) then a higher high maybe Tuesday/Wed of next week...that would be subtley positive trend news.
Either way, now with SIRI earnings out of the way and the market at the doorstep of the next trend higher...action bodes well upside. Including today, SIRI is 11 days down to sideways (sideways about 7 of those). Friends, we haven't seen this kind of trend since August... and this seemingly now clear of any bad news. (ah yes, remember the good days of august! gone but not forgotten...).
The natives should be getting very restless...
At the time and place of their choosing...IMHO...
I tried to get in under the .25 all day. My brokerage reported a range of .23 - .27 but I never saw anything below .249 and that was only for a moment. I did get back in today with 60% of my position, having sold everything out at .41 I am feeling as you, and don't want to be out too much longer. My concern today is again that several large trades held the price at .25 today, as they did at .28 for three days prior to the call. Its clear that the price is being controlled, the real question is which way do they want to take it in the short term......
If the Markets in general retest lows will Sirius revisit .215. I was confident they would, and with a revaluation of Goodwill valuation appearing to be hold up the SEC filing, maybe it will. I do think good news will move this stock up, bank financing without further dilution, auto maker bridge loan from the government, more evidence of a stronger retail product line, some glimpse at Best of Both revenues. I don't want to be out of position when the news happens...... This is definitely not a company facing bankruptcy given yesterdays report...
I just read your above post and agree it feels like we are on the verge of something to the upside here... Your analysis helps to see it more clear... Tomorrow will be an important day. Thanks for the info....
I again have to question your optimism, as much as I want to share in it.
Today, after what was really a good report, the stock showed no interest...??
I'm concerned that there will not be a bump going into the Dec 18th meeting....
Obviously EVERYONE (but us) wants dilution & rev split.....Mel and the board want it (hopefully for the right reasons) and the shorts & MM's want it for the oportunity to tear it down..
There's no new shareholder interest, so what is going to push it up????
Refi?? what if it's not til' Feb??
B of B?? won't be reported til Feb..
Q4 results......Feb...
No problem. After thinking further, tomorrow could be the last down day due to Thursday's weekly jobless claims number. Then Thursday could start out down then finish up to start the new rally...just a thought. JUst to show how fickle the market is did you see that push back up when they released that Fannnie/Freddie news? Then when they read the fine print, right back down -200. Pretty funny! I also saw that .23. It was a one off trade spike with no chance for other bids. There was one of these a few days ago up @ .38. We can only imagine the origin...
Killer and SD...
My take is the uptick at this point is of "their" time and choosing. But like cos1000 says, tomorrow will be interesting for two reasons. 1. To see if today was any kind of set-up. and 2. To see if the actual release of the 10Q causes any further scrutiny. They may wait for a motivator like an economic number or other to yank it down then drive it up like last time. It will happen quick though as we know. Thursaday could be the day w/ jobless claims. Where we are at now, I think they will drive it back up very soon just to generate more interest. The consideration is have they had enough? An interesting stat today on short interest:
>Sirius XM Radio (SIRI.O: Quote, Profile, Research, Stock Buzz)
OCT 15- 285,208,034 OCT 31- 232,009,933 +53,198,101 +22.9%
A SIGNIFICANT jump higher. Here's your .44 - .25 move right here. So they will have to lock in profits soon. Esp. now that all neg news is out on SIRI. But today really spoke volumes about how this stock is "coersed". Which to me works in our favor. Given the last few day's market downtrend, the stock had every reason to be .20 going into earnings. Yet instead it hung out @ .27 - .29. The fact that it came nowhere close to .20 has to mean something at this point IMO...I would say if tomorrow is another flat day, keep an eye out. Let's see.
And SD...there are plenty of movers in waiting for the stock. And as said, if Mel is really going to do bank refi, LIBOR is prime RIGHT NOW (2.175). I posted the LIBOR trends earlier today. From here in, it is a gamble whether or not it will be lower in Feb than now. In this kind of market, why would you wait and gamble on .3 - .6 lower when it could also be up that or more? I know it's millions of dollars and every bit can help but at this point you have to say we have 2.7B in revenues. We can afford 10 -12M a year in interest until we can pay this down...considering the issues at hand right now. Otherwise...I think esp. given the new short interest report, it could just happen as...one of those "for no reason" things. Don't forget, indie shareholders cannot short under $5 due to not being marginable by brokers. So all this new short interest is institutional...and to that end there is also a ring leader, while the others follow them. So when the leader covers, so will the parasites...
Good luck on trades all...
OCT 31 - 285,208,034 OCT 15 - 232,009, 933 + 53,198,101 +22.9%
A stock I follow and play is LVLT. Check their chart between Oct. 25 - Nov 4...a significant move higher. They got a major haircut on Oct. 24 then there was a quick reversal. Short covering anyone?:
>>Level 3 Comm (LVLT.O: Quote, Profile, Research, Stock Buzz)
OCT 31 - 220,042,613 OCT 15 - 233,076,267 -13,033,654 -5.6%<<
They appear to have rebuilt that short interest right back up...closing @ .88. They are second highest reported short interest behind SIRI. Maybe one to keep an eye on if you feel so inclined..they tend to move pretty well for intraday trades as well... .10 -.12 per day is very usual.
On Nov 11 12:26 PM shure46 wrote:
> Q3 financial statement --- A cookbook Betty Crocker would be proud
> of
>
> Tyler - " Mel made it crystal clear , the RS is only to avoid de-listing
> " ..." Mel " and " crystal clear " in the same sentence , is an oxymoron
>
>
> Debt -- Ok , so we miraculously pay off the 1.3 B debt in '09 ...totally
> .....by the end of '09 , Siri will accrue ANOTHER 300 M debt because
> they operate in the negative ........and '09 is NOW projected to
> be break even , instead of profitability that Mel was " crystal clear
> " about , last time he conducted a seance
>
> I have ONE MOLECULE of optimism left in Siri , and that is the S&P
> has a one year target of 2.00 ............That's it
>
> Siri's reports are worthless , because they omit anything and everything
> that could possibly hurt the numbers , and they cook every single
> stat , any way they can , to look better ......and they C their A
> by saying , " We believe " before supplying their finagled numbers
>
>
> Siri should sell / lease the U.S. government 2 or 3 channels for
> a billion bucks , and get out of this mess once and for all ....with
> NO RS and NO dilution ............This is so obvious it is rediculous
I am a small time Sirius (well, I was an XM) investor. I was just wondering, in layman's terms, what are the chances in our stock price going back up to a reasonable level, eventually? I have a lot of faith in satellite radio. Just curious. Thanks