An End to Sirius Stock Manipulation May Be in Sight

I spent the better part of my afternoon trying to lock in a specific reason that Sirius XM (SIRI) stock rose nearly 50% by the time after hours trading had ended. It is easy to get tunnel vision when one owns a specific equity. I looked to the Apple (AAPL) conference but found nothing. I checked for SEC filings and FCC filings. I searched news, blogs, message boards and dozens of websites, all to no avail. I then realized that this overall sentiment was being realized by nearly every stock in the known universe. It seems to me that the significant move to the upside that Sirius XM investors enjoyed was the result of a broader market condition. I checked the advance/decline line which reveals the following:

• NYSE - up volume 72%
• AMEX - up volume 96%
• NASDAQ - up volume 92%

SIRI investors will want to thank Senator Ted Kaufman. Specifically of interest to Sirius XM investors is Tuesday’s report that the Senator from Delaware has introduced bipartisan legislation to reinstate the uptick rule. There are parts of this specific legislation that are extremely important to investors in stocks that are suspected of high levels of naked short selling and manipulation such as Sirius XM. The following is from the senator’s website:

“Sen. Kaufman was joined by Sen. Johnny Isakson (R-GA) in introducing the legislation, which directs the SEC to write regulations within 60 days that accomplishes five things to end abusive short selling:

(1) reinstate the substance of the uptick rule that prohibited short sales that are not made on an increase in the price of the stock; this prevents short sellers from piling on a declining stock, driving prices down.

(2) require exchanges and other trading venues to execute the trades of long sellers ahead of short sellers, all other things being equal.

(3) with the concurrence of the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System, prohibit short sales of the securities of any financial institution unless that trade is affected at a price (in minimum lots specified by the Commission) at least 5¢ higher than the immediately preceding transaction in such securities. Our financial sector, and financial stocks, are in a fragile state - and our taxpayers now hold substantial shares of many institutions. If the Treasury and Fed believe they need additional protection in these times, this legislation permits it.

(4) prohibit any person from selling securities short unless that person has at the time of the short sale a demonstrable legally enforceable right to deliver the securities at the required delivery date. Under current law, many short sellers fail to deliver - we must tighten up the rules.

(5) require that all short sales settle on the same time frame employed for long sales of the same securities. There is no reason short sellers should have 13 days to deliver shares when long sellers have only three days.”

With the short sellers and manipulators receiving notice of the wrath that is to come, it is clear that these criminals who have profited off of the hard work of others are scrambling to close out their positions as quickly as possible. With manipulation removed, Sirius XM as well as other equities (note the rise in financials) are free to rise and fall based on their own merits.

Disclosure: Long Sirius XM

Comments

[holmesnmanny:]

Absolutely. Call that a blessing, though, as you now have an opportunity to make a profit on it's upswing which will occur, like I plan on doing.

On Mar 19 09:54 AM wcorowitz wrote:

> Something criminal just happened to SIRI stock. It fell 33 plus percent
> in 20 seconds. someone did this to get out of a short position. someone
> needs to go to jail. Someone explain how a stock can fall so fast
> on so little volume?

Mar 19 09:59 AM

[holmesnmanny:]

I meant by me buying some stock here as this bottoms out.


On Mar 19 09:59 AM holmesnmanny wrote:

> Absolutely. Call that a blessing, though, as you now have an opportunity
> to make a profit on it's upswing which will occur, like I plan on
> doing.
>
> On Mar 19 09:54 AM wcorowitz wrote:

Mar 19 09:59 AM

[rtatp31:]

Its the Motley Fool manipulation.

Mar 19 10:10 AM

[rtatp31:]

What ever happened to our friend Relmar?

Mar 19 10:14 AM

[holmesnmanny:]

Here's what I'm thinking is happening. Someone with a lot of shares or a group, is/are selling short, they sold, the share went down, you and me are thinking we're gonna lose money, we sell, the price goes down further, they buy to cover and made a nice profit.

This appears to be what happens all the time with penny stocks, even big companies that are strong like Sirius.

Instead of selling, simply buy more, then the short sellers will see the stock go up and be forced to buy to cover as the stock price rises, therefore you make money on the stock you bought on the cheap when the short sellers originally sold their stock they borrowed.

Mar 19 10:21 AM

[holmesnmanny:]

.....Oh, and they lose money trying to sell short.

Atleast that's my plan.

Mar 19 10:23 AM

[wcorowitz:]

That's fine but it went to .22 cents but when a small player tries to get in he's shut out. I tried to get in at .30 cents, but they shut me out again. Someone is holding this stock hostage.

Mar 19 10:43 AM

[robert.b.fe...:]

The operational word is "Comparable".


On Mar 19 09:43 AM holmesnmanny wrote:

> That's absurd. Why do you think people are already paying for services?
> Because it's worth it. Sirius offers a ridiculous amount of content
> at great prices. There is no reason for people to go to free content
> unless that free content offered the same services that Sirius offered,
> except for, say, music. And that's not gonna happen unless the people
> that are getting paid by Sirius to host a show or provide original
> content from Sirius are gonna get paid by the free content provider,
> and I don't really see who would be able to challenge Sirius since
> Sirius is the sole provider of such a high amount of original content
> already. I think most people signed up for Sirius are not buying
> it solely to listen to music that they could listen to on free airwaves.
> And if they did buy it for the music why would they already be paying
> for content at the present time?

Mar 19 10:46 AM

[holmesnmanny:]

If you're referring to my "Why do you think people are already paying for services?" comment, then that word wouldn't apply since there are no comparable services at the present time.


On Mar 19 10:46 AM robert.b.ferguson wrote:

> The operational word is "Comparable".

Mar 19 10:52 AM

[elcopone:]

It's about time. Now if we could get mark-to-market accounting rules changed, we would really see some action!

Mar 19 10:55 AM

[between the...:]

Buy more. Too many big dawgs invested in this company and stock for it to plummet. If you want to run a successful store, you buy your merchandise cheap and sell it for more. Same idea with this stock. Don't forget the pain is over. Are the shorts still in shock? The sun's a rising and so will SIRI. Those who stayed in this battle will smell the sweet success of victory as this stock climbs. Those timid souls who stayed on the sidelines or critics will never know the smell of failure or success. BTH BTH BTH!!!

Mar 19 10:59 AM

[connorport:]

The problem with this is these companies have no ideal how much they will pay in royalties. SIRI is already internet ready with the line up needed and royalties paid already. This is like saying they are offering free internet TV so sell all your shares of Time Warner and all you SatTV shares as well. People will pay for the content. Cable has proven it.


On Mar 19 09:34 AM robert.b.ferguson wrote:

> If you are long on SIRI be advised to get out on the next bump. Two
> companies are introducing blue tooth integrated streaming internet
> radios (More on this tommorow.). When these devices become wide spread
> the implications for SIRI are obvious. Pay services confronted with
> comprable free services often suffer. Steaming from any radio station
> on the internet world wide could be a problem for SIRI going forward.
> As for the uptick rule I have been advocating reinstatement for it
> and Glass/Steagall for months along with repeal of Sorbanes/Oxley
> and mark to market accounting.

Mar 19 11:57 AM

[connorport:]

Besides, it would not be comparable. If there service was free then how would they make money? unless the copied terrestrial radio which is not comparable. Like i said, put up the antenna or buy cable or sattv. People have been paying for the service for years.


On Mar 19 11:57 AM connorport wrote:

> The problem with this is these companies have no ideal how much they
> will pay in royalties. SIRI is already internet ready with the line
> up needed and royalties paid already. This is like saying they are
> offering free internet TV so sell all your shares of Time Warner
> and all you SatTV shares as well. People will pay for the content.
> Cable has proven it.

Mar 19 12:49 PM

[connorport:]

Besides, it would not be comparable. If there service was free then how would they make money? unless the copied terrestrial radio which is not comparable. Like i said, put up the antenna or buy cable or sattv. People have been paying for the service for years.


On Mar 19 11:57 AM connorport wrote:

> The problem with this is these companies have no ideal how much they
> will pay in royalties. SIRI is already internet ready with the line
> up needed and royalties paid already. This is like saying they are
> offering free internet TV so sell all your shares of Time Warner
> and all you SatTV shares as well. People will pay for the content.
> Cable has proven it.

Mar 19 12:49 PM

[Edster:]

SEC investigation is needed in the trading of SIRUS/XM. Appears to be a lot of manipulation in buying and selling the stock. Perhaps short selling temporary be halted due to what seems to me the volume in trading the stock is too extreme without significant news emerging from the corporate office. It will however, in due time which will then stop the manipulating of the stocks price.


On Mar 18 07:07 AM Edster wrote:

> Tighten your belt XMSR will soon be over $1.00 the start of the stock's
> price on the upside. This holder is optomistic and as the complete
> confidence in CEO Mel and his administrative staff. The best of luck
> to all holders of the recently merged SIRUS and XM companies stock.

Mar 19 01:26 PM

[Come on Guy...:]

I totally messed up! last night I put in a stop limit at .23 cents thinking giving it enough room to go down without selling and this morning it hit .22 cents and it sold all my shares! It never hit those low numbers again! I just averaged down to .70 cents now if i get back in it with the same amount of money, my average is up at 1.00.. Totally sucks!

Mar 19 04:33 PM

[FoolNHisMoney:]

Relmor and the other SA regulars are on the forums at SiriusBuzz.


On Mar 19 10:14 AM rtatp31 wrote:

> What ever happened to our friend Relmar?

Mar 19 10:06 PM

[cos1000:]

The younger will be as Deluded..... because the delusion comes from greed not knowledge.......


On Mar 19 08:43 AM monday1929 wrote:

> Reverse splits do not"raise" anything. Stock splits do not do anything
> (except create buying frenzies during Manias).
> The bubble is over. The young Generation will wonder why the DELUDED
> thought that slicing a pie differently was thought to make the pie
> larger by their elders.

Mar 19 11:00 PM

[cos1000:]

Why advice on short term bumps base on long term plays that are not even relevant.... Blue tooth is an assistant technology not a competitor ..... what content on Blue tooth..??


On Mar 19 09:34 AM robert.b.ferguson wrote:

> If you are long on SIRI be advised to get out on the next bump. Two
> companies are introducing blue tooth integrated streaming internet
> radios (More on this tommorow.). When these devices become wide spread
> the implications for SIRI are obvious. Pay services confronted with
> comprable free services often suffer. Steaming from any radio station
> on the internet world wide could be a problem for SIRI going forward.
> As for the uptick rule I have been advocating reinstatement for it
> and Glass/Steagall for months along with repeal of Sorbanes/Oxley
> and mark to market accounting.

Mar 19 11:04 PM

[between the...:]

Really think this through. There are very rich people POURING, yes POURING, money into this company. Does anyone think that they are even worried about internet radio? It's crap! SIRI on the rise even with auto sales in the dumps? What happens when autos turn, and they will. My consistent recommendation is follow the rich and buy.

Mar 20 12:41 PM