Sirius Investors Still in the Dark as Takeover Speculation Continues 169 comments
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Just as everyone thought that Charles Ergen was the lone player at the poker table, news surfaces that Sirius XM Radio (SIRI) is in talks with Liberty Media (LCAPA) as well as DirecTV (DTV) (Liberty has an interest in DirecTV). Immediate thought of a bidding war is likely the first thought on every shareholder's mind, but shareholders need to be cautious. Like nearly all reports over the past week, this news seems to be a leak that is lacking in detail. Sirius XM, Ergen, Liberty, and DirecTV all have no official comment.
Ergen has been buying up debt to leverage his position. This could give him a leg up on others, but then again, he is rumored to be seeking outright control, and as yet does not seem to have enough of the debt to get to that point. One can imagine that additional reports and leaks will be coming in the next couple of days, and that will add fuel to the speculation fire.
While there is speculation that the interest in Sirius XM relates to the satellites and repeaters, the more likely situation is that these suitors are attracted to the top line growth that Sirius XM Radio has, and will continue to have for some time. Costs for satellite radio are coming down, revenues will rise, and that combination is attractive. The stumbling blocks are the company’s debt, the credit markets, and a poor economy. At some point the credit markets and economy will recover. The question is how the debt will be handled, and who will control Sirius XM Radio going forward.
It is not hard to imagine that there have been a series of meetings and presentations happening at very high levels. Shareholders remain in the dark with opinions, speculation and guesstimates. Sirius XM Radio is expected to deliver Q4 2008 numbers in the final week of February but it could be as early as tomorrow that we begin to see the poker game played out.
Position: Long Sirius XM Radio
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I think he is funny. But since I do not buy stocks in China or the other things he is fond of I can neither blame or give credit for anything I have done. (I make all my mistakes on my own)
Well SP was up .19 (36.36%) over yesterdays close. Lets see what news there is between now and tomorrows open.
On Feb 12 03:53 PM Bababooie wrote:
>
> Suzie Orman is a lot more butch than Cramer!!!
Marathon Oil. I live in Findlay Ohio (home to Marathon oil ) so I am aware they own quite a bit of undeveloped land that has confirmed oil resources. But while oil lags like at present it will remain undeveloped. When oil turns around expect Marathon to be interesting (either through there own expansion or take over)
Don't ask me if now is good time to buy them. Some where in the future that stock will increase.
I was wondering also. I think covenents would prevent open sale without bondholder consent (as they have in Bank facilities). Myabe they tried and couldn't get consent...could be wrong...
Baba...any info on that?
On Feb 12 04:16 PM sl62 wrote:
> LOL on Suze Oramin. Baba, you're right on, she is a lezbo...(not
> that I'm against Lesbianism...Iipstick that is. Butch stuff gives
> me the creeps)
On Feb 12 04:13 PM asm61064 wrote:
> When did they adjust the one year target up to .45 ? It's been at
> .40 since early in Jan.
lol...did your tracker change today? Awfully funny of it to adjust up today on rumors of bankruptcy and takeover which leave us shareholders (supposedly) out in the cold....don't you think?
On Feb 12 04:47 PM asm61064 wrote:
> mogami,
> lol...did your tracker change today? Awfully funny of it to adjust
> up today on rumors of bankruptcy and takeover which leave us shareholders
> (supposedly) out in the cold....don't you think?
nuthin wrong with lez as long as it's lipstick...yeah, ok, I'll admit it. I'm one too...I guess I had to come out the closet sometime lol
Check out the afterhour push.... it always amazes me that a stock worth .07 all day long, finds new value in afterhours....
King again....p.s. I thought they were crazy shorting below .50
Hi, Anyone who opens a new short position on a .05 stock is crazy. The most you can make is under .04 (since you will push price up when you cover) but the risk you take is immense. We saw the way SP soared on phoney news. Any real news that is positive will wreck you. So only imbeciles are still shorting this stock. And I think they are privy to inside info since Sirius provided them the shares to short in the first place.
However my point is I do not expect to see a short squeeze propell price when the good news comes. (I still believe the news will be good or I would have sold everything when Sp was over .20)
On Feb 12 02:29 PM sl62 wrote:
> mogami_99...
>
> Disagree shorts have left the building. Even though we've hit actual
> BK levels in .052, certain contingent will still wait. Certain contingent
> will cover, then reshort just a la longs. SI should stay in the 200M's
> and keep rotating. Since SP was cut in half, volume naturally will
> go up portionately. Have you ever traded .05 stocks or sub penny?
> 200M shares is common, regular activity between shorting, covering
> and buying and selling. To easy to buy 100K blocks for traders. Blocks
> are just bigger so volume naturally goes up. Throw out the rules
> pre last Thursday. Next rule change is when deal announcement comes