Time for Sirius Action as Stock Faces Removal from Russell Indexes

By Brandon Matthews

For many years, people have wondered how money managers were able to invest in Sirius XM (SIRI), despite having a stock price below $5.00 a share, which is a requirement under many growth and value fund management rules. One such way is through index funds. Sirius XM has been listed with the Russell 3000 and Russell Global Indexes, which has served to help drive demand on the Institutional side of the business.

Each year on May 31, Russell Investments rebuilds its Russell 3000 and global indexes. The practice serves to rank U.S. equities from the largest market capitalization to the lowest. Index funds and ETFs are dependent upon these indexes.

• Top 3,000 stocks become the Russell 3000® Index.
• Next 2,000 stocks become the Russell 2000® Index.
• The smallest 1,000 in the Russell 2000 Index plus the next smallest 1,000 comprise the Russell Microcap Index.
• Largest 1,000 stocks become the Russell 1000® Index.

Despite Sirius XM having a sufficient market cap to remain listed, its sub one dollar share price excludes the equity from eligibility this year, under Russell’s reconstruction rules. The reconstituted list will not be finalized until June 26, and will not be publicized until June 29, 2009, with the next round of updates scheduled for June 19.

I have maintained the unpopular position that Sirius XM has at its disposal, and should implement as quickly as possible, its shareholder approved reverse stock split. The benefits of such a move are many. From a reduction in the overall float to maintaining listing requirements, it’s time for Sirius XM’s board to act.

Position: Long SIRI

Comments

[between the...:]

Snoozefest. Keep it simple. Catalysts and news drive stock price in traders market. I Phone app. Auto rebound in late 2009. Big catalysts. Also there is a big difference from time of merger. Possibility of brupcy was a probability at that time without funding. Funding is available now from Liberty. No way SIRI will go bankrupt. Shareholders are also owners of satellite radio and would give any company trying to buy bankrupt pieces of Sirius the absolute business. How bout a little freaking optimism. Some one, John Malone, with a bunch of money sees a good business model or no way he'd invest in these times.

Jun 16 04:21 PM

[RealityofSiri:]

Honestly, do a little more research on the loan and the various possible outcomes. Catalysts and news drive stocks on a short term basis but fundamentals always come into play. Bababooie actually knows what he's talking about and as he points out, opinions vary and although I don't completely agree with what's going to happen, he has a reasonable and well thought out opinion. Siri is still not out of the woods even with the loan (which was one of the most lucrative deals I've ever). I can still smell the desperation.

Stop being a cheerleader and be objective. There are positive with SIRI but there are also negatives which are why I've become annoyed with the ridiculous, unfounded statements by numerous posters only cheering on the sidelines. I almost never post on these sites, but this is getting out-of-hand. Between these ridiculous articles that Brandon writes (how can you take that last article about the movie seriously.......he's in the movie........any true professional would have not written about this but instead would have left it to another blogger) and the ridiculous statements like SIRI is going to $1 next week, this site is becoming more absurd and useless by the day.

FYI, if SIRI goes bankrupt, the common stock holders (which I'm assuming is what we all are) lose every penny and have ABSOLUTELY no say in what happens. If you're going to argue, argue about something you actually understand and not something you know very little about.



On Jun 16 04:21 PM between the hedges wrote:

> Snoozefest. Keep it simple. Catalysts and news drive stock price
> in traders market. I Phone app. Auto rebound in late 2009. Big catalysts.
> Also there is a big difference from time of merger. Possibility of
> brupcy was a probability at that time without funding. Funding is
> available now from Liberty. No way SIRI will go bankrupt. Shareholders
> are also owners of satellite radio and would give any company trying
> to buy bankrupt pieces of Sirius the absolute business. How bout
> a little freaking optimism. Some one, John Malone, with a bunch of
> money sees a good business model or no way he'd invest in these times.

Jun 16 04:58 PM

[Mr. Stupid:]

Anyone who wants to see who the real one is anyway only has to look at the JOIN DATE.

Duh




On Jun 16 02:39 PM Mr. Stupid. wrote:

> You really have no clue it is not jsmithy I wish you would change
> your name. To Mr Suspicious since you are so Paranoid

Jun 16 05:27 PM

[jmsithy:]

boy are you smart you should work for Seeking alpha and Join Brandon with his words of wisdom


On Jun 16 05:27 PM Mr. Stupid wrote:

> Anyone who wants to see who the real one is anyway only has to look
> at the JOIN DATE.
>
> Duh
>
>

Jun 16 05:40 PM

[Keyscycler:]

I am slowly learning you are pretty right on with your predictions, didnt want to believe it a few weeks ago when it was spiking up, but you are usually right, keep up the good honest predictions, Eric


On Jun 16 12:23 PM Jay Boy Billy. wrote:

> Here is my stock predictions and you know that I am right
>
> Wed.... This will go up by .02
> Thurday..... This will drop by .01
> Friday....... This will go up by .05 because of word of the Sirius
> App anouncement
>
> Monday this will be up again and keep rising
>
> Take it and buy it

Jun 16 07:17 PM

[holdon:]

when it come's to articles ,tyler savery is consistently conservitive , i like that , i respect that.
brandon,....sometimes you drift into the twlightzone......this rev. split is the worst thing that could happen, especialy right now.

paticence brandon!!!!

Jun 16 09:09 PM

[Mr. Stupid:]

Well you just told on yourself. We all know it's you that's the imposter.
LOL, I have to admit that was funny


On Jun 16 05:40 PM jmsithy wrote:

> boy are you smart you should work for Seeking alpha and Join Brandon
> with his words of wisdom

Jun 16 09:20 PM

[jmsithy:]

I can not wait for the 18th been hearing more and more about the apps

Jun 16 10:11 PM

[Mr. Stupid:]

I will thank Jay Boy Billy for ya when he comes back on again. The person you're thanking isn't really JAY BOY BILLY. Notice the period behind the name. He is usually right though.

Frank


On Jun 16 07:17 PM Keyscycler wrote:

> I am slowly learning you are pretty right on with your predictions,
> didnt want to believe it a few weeks ago when it was spiking up,
> but you are usually right, keep up the good honest predictions, Eric
>

Jun 16 11:01 PM

[Jmsithy.:]

I can sense some great news for Sirius investors coming soon. With Siri just hanging around .33/.34 there is huge potential for upside. Siri isn't going anywhere so I see very little risk at these prices.

Jun 16 11:36 PM

[BigVinnie:]

An R/S right now can still put sirius/xm shares over the $1 thresh hold. Shorts would have to borrow more, it will also change the position of the stock to buy . Short sellers have been looking to drive this stock back into the toilet at .25.
It's time for consolidation without the dilution. I'll take an R/S right now knowing that huge inflation rates are occurring for the next year!!


On Jun 16 08:30 AM relmar2003 wrote:

> Terrible article. Brandons worst to date. Never going to happen,
> and a R/S right now would be a disaster. No worries, because its
> not going to happen. Russel index isnt important enough to be involved
> with for a R/S to make any difference just to stay on those indexes.
> Russel index already shedded most of the shares in anticipation of
> this in Q1. Institutional reports showed this at the time.

Jun 16 11:41 PM

[relmar2003:]

Hey the Mr. Stupid with the 200 posts...
No one is listening to you. LOL LOL
Does that make you mad? Ill bet it does.
Multiple log ins? LOL LOL
Ya bro, ok man.
I think I hear your mother calling you up from the basement. Time for dinner. She also is asking if you did your homework. Your not even a good basher. Try another trade. Especially one that pays better, you probably can barely afford your Wolverine comics. HHAHHHHHAAHAHA
LOL
LOL
LOL
What a douche. Get someone in here better than his guy. Hes not even fun. I miss BC Charger, he was more fun.

Jun 17 08:23 AM

[relmar2003:]

I miss the gay job bob billy guy too or soemthing
And of course my all time favorite, THE FLOOR HOMO!!!!!
If it was your job to publicly bash SiriusXM, you think you could come up with a more legitamite sounding name. Like I said many times, these guys are smart, why they take the crap pay. Next......

Jun 17 08:25 AM

[relmar2003:]

Yes bababooie, but you fail to mention for a while now, not all the shares are shorting. Some are either long or on the sidelines. Actually anything below 300 million SI is very bullish. Its HOW and WHEN they short that matters, not the amount that much. Amount is nothing if it was a one time short, looking to close out. You know like over a few weeks, a month, etc...
But these shares are shorting and buying, shorting, covering, buying, they can do it all!! I feel like an infomercial now. :)

Jun 17 08:29 AM

[Jmsithy.:]

I have lost money up to the Kazoo with this stock. It's a dud and RELMAR, I can't trust you anymore. You're mentally deranged.

Jun 17 01:08 PM

[jmsithy:]

you better jump on board Mr. Stupid or you are going to be left behind
cry cry cry

Jun 17 01:22 PM

[jmsithy:]

That is funny Mr Stupid (what no one wants to look at your comments any more so you need to immate someone else that has not done anything to you


On Jun 17 01:08 PM Jmsithy. wrote:

> I have lost money up to the Kazoo with this stock. It's a dud and
> RELMAR, I can't trust you anymore. You're mentally deranged.

Jun 17 01:23 PM

[jmsithy:]

Yeah finally broke .35 after 2 weeks sweet / cant wait til tomorrow invested another 200.00 yesterday at .33

Jun 17 02:58 PM

[jmsithy:]

So Sad Mr. Stupid

Jun 17 03:07 PM

[Roxieanne:]

Now is not the time to do a reverse split. A reverse split would simply play into the hands of more hedge funds shorting and doing naked shorting.

Those folks simply will continue doing what they know to do best------reverse split and the vultures will descend to take the price of the stock back down.

How many times have I and we seen this happen with stocks with reverse splits.

I just finished going over the Russell 3,000---there is no need for Siri/XM to be on the Russell 3,000 and be one of simply a consumer discretionary stock amongst 3000 other stocks.

I don't view Siri/XM as a discretionary stock----it is after all the only American company with the capabilities that it has------why hide it under that title.

Call it what it is------a Satellite Communications Stock that just happens to be the leader in bringing live radio to the consumer from the sky.

Jun 21 02:32 AM