Analysts' Zero is the New 'Buy' 45 comments
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BusinessWeek's Aaron Pressman sees a trend among Wall Street analysts (who in past downturns were curiously unwilling to slap "sell" ratings on failing stocks) towards the big goose egg. Predicting a stock is going to zero, which he says may have started with the collapse of IndyMac (current price: about 2 cents), is taking off:
Now "zero" ratings are proliferating. RBC Capital Markets analyst Mark Sue slapped a target price of zero on telecommunications-equipment maker Nortel Networks; Deutsche Bank analyst Rod Lache says General Motors shareholders will have worthless stock certificates within 12 months; and Henry Blodgett (sic) thinks satellite radio provider Sirius XM is headed for bankruptcy. Analysts at Morningstar say the shares of 32 of the 2,000 companies they cover are likely to become worthless.
Analyst estimates are notoriously unreliable, of course, so don't expect every stock with a target price of zero to go out of business. But many recent zero-rating recipients are indeed in dire straits.
He outlines a few including Nortel Networks (NT) and in the comments Pressman links to Morningstar's stories listing a few of the names on the way down.
It's mildly funny that analysts are issuing "zero" ratings now, since by the time most formerly solid stocks hit that level a change to the price target is pretty much the canary in a collapsed coal mine. Investors who need some sort of road sign at that point should really be watching debt levels, liquidity and other measures of simple solvency.
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no worries. I'm in the media biz so I get your overall point...your post was just confusing at the end there...it was unclear that was meant to be a headline...
Exactly. A-holes like 24/7 Doug make their living manipulating data in generalities to attempt to bolster their cred and justify their existences as critcal reporters. He's a class AAA+ douche bag.
As I said in my last post, I've been readng all of you but kept my mouth shut.
However, seeing that tomorrow is the "big day" I had to say hi and raise a glass.
Good luck to all of us & may someone somewhere have pitty on us.......................
I thought I made a good last buy yesterday at .14 but of course it managed to break to .13 today........I'm now averaged at .72.....
I have to say, I'm not feeling too good about tomorrow. I have a bad feeling that the only things we will know by the EOD are that the dilution and split have passed and that the mgmt is still in place. Which we already know.
I hope this isn't just another "big day" that comes and goes with nothing substantial coming out of it,,,,,,,,,but I'm not feeling very good.
Quick question while I'm here,
Is it true that if the sp goes to 0 that the shorts don't have to cover? And, that they don't even have to pay taxes because there was no ending transaction.
Good luck to us all......................
Thanks
Today - 50 million share volume ....... very little changes in price all day
Well, I've got my last round in the chamber. I'm considering putting in an order at .08 which would get me down to the low 50's,,,,,,,I think I'm going to wait to see what happens tomorrow.
Funny how that info comes out at the 11th hour.....................
I hope it is true. But, I don;t see how as MEl wants a Yes and the non vote usualy goes to company desire.
FREE BANK MONEY! FED 0% makes the effective bank rate 0.18% official. The morguage lending rate will soon be 4.5%. I am absolutly sure Mel could get cheap, very cheap financing now...
If Mel does not fund this debt now it means he never had any plan to finance and stock holders were always the patsy.
No Financing yet Mel? You mean the quick and dirty thing was a cover for your plan to rape stock holders and short your own company?
Curent conditions and intrest rates are telling the true story. Mel did not count on historic low bank rates...
SL62
Your comment, "when enough people all wind up saying the same negative general thing over and over again ad nauseum, with nothing new ever to cite, you know it's not as bad as it looks and often there's a lack of intelligence at the root of it." really hits the nail on the head for me personally.
"Me thinks thou dost protest too much" is the Shakespearean line that comes to mind. One would have to wonder if there is ever going to be any positive news on Sirius post merger when reading all the negative hype from the various sources. Nevertheless, I think that it is not as bad as it is being made out to be.
Keeping the faith!
Long Sirius
Sirius is an FCC protected monopoly of SATRAD band space. In one form or another Sirius can not fail. It could go into an operational BK or be stolen private on the cheap. But someone will make millions.
This meeting and Mels action in the next 10 days with bank financing this low, will tell the true story.
Was it the plan to rape stock holders with shorts and double down dilution? We may never hear the answer but it will be obviose.
Now the econimy realy sucks Mel. It is telling on you... LOL
So, what you going to do Mel? Our Lawyers are getting restless....
That is not loving your feeling, it is pressure.
Your plan has come to an end and you better get financed.
How much money do you need from shorting? They already built a new vault just for you in the Bank of Belize.
Mel, what you going to do?
“Mel turned down a very low rate, multi year, multi million dollar loan from an investment group”?
Who would pay more for that kind of information?
What are you going to do Mel? LOL…
If Mel intention is good and rate are all time lows and above is approved then he should be able to negotiate with one top button of his shirt opened. No need to really go for RS or Dilution.
If bad intentions, then immediate plan for RS and Dilution.
The intentions should be clear within next one or two weeks.
Hope Mel has good intentions and everyone has really Merry Christmas.
I had to be out for the close today and I see that SIRI dumped out in the last 10 minutes to close @ .13. Well, if the data holds up, we should be seeing .08/.07 next. Sorry to say but maybe not so much because my hope is that then turns into the ultimate capitulation (and I will be piling in). Forget about going to 0. To go to zero, a stock needs to go sub penney .0001. Not happening in this case. Look, .13 IS zero by any standards my friends (to quote old McCain).
This means for sure that the dilution is on starting tomorrow and the stock will bottom somewhere around .05.
I have to say that I am stunned that they are holding this meeting tomorrow with a .13 SP. Worst case scenario. Wow. Good luck Mel. I actually hope he gets his ass squewered. He needs to feel some of this too ya know. What a joke.
For those unhappy with recent content changes, witness:
>>Disco and Old School Hip-Hop Channels Back by Popular Demand on SIRIUS XM Radio
2008-12-16 16:42 ET - News Release
The Strobe and Backspin return on January 15
The Beat Morning Show launches on BPM
NEW YORK, Dec. 16 /PRNewswire-FirstCall/ --SIRIUS XM Radio today announced the return of two music channels: The Strobe and Backspin. SIRIUS XM listeners will be able to listen to The Strobe and Backspin beginning Thursday, January 15.
(Logo: www.newscom.com/cgi-bi... )
The Strobe and Backspin will bring back disco/classic dance and old school hip-hop respectively to SIRIUS and XM. Additionally, The Beat Morning Show will launch on BPM on January 15. The daily show will feature popular dance hits and be hosted by former Beat program director Geronimo.
"Bringing back The Strobe and Backspin, and adding The Beat Morning Show, is part of our commitment to respond to our subscribers' overwhelming passion for our service," said Scott Greenstein, President and Chief Content Officer, SIRIUS XM Radio. "We are fortunate to have an enthusiastic audience that embraces satellite radio with unprecedented fervor. We will continue to listen to them as we strive to create the best audio entertainment experience available."<<
I don't think it was ever discussed on the other board that a company like SIRI, who is sly like a fox, will cancel on purpose to be able to bring back and make themselves look like they are caring for the consumer. Just as seen in this article--(but to which the contrary was confirmed by Mel when he opened his big mouth again last week). Now, I don't take away from them that there will be some natural and genuine give and take regarding programming (and effective listener protestation), but this one, so soon (and just before meeting time), wreaks of being contrived. IMHO.
from Today's Meeting
investor.sirius.com/se...