Sirius XM Silences Critics with New Contract for Karmazin 107 comments
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by Brandon Matthews
An SEC filing from Sirius XM Radio (SIRI) Tuesday reveals that Mel Karmazin, the company’s Chief Executive Officer, has signed a new contract extending his term through and until Dec 31,2012.
The terms of the new deal:
- increase his base salary from $1,250,000 per year to $1,500,000 per year beginning on January 1, 2010
- provide for the grant of an option to purchase 120,000,000 shares of SIRI common stock, at an exercise price of $0.430 per share (the closing price of SIRI on June 30, 2009)
In my opinion, the company has made a fantastic move by taking care of this nagging issue. This will obviously silence those critics of Mr. Karmazin who speculated that his days of running Sirius XM were numbered. I have been witness to many such attacks on Mr. Karmazin from many opposing fronts.
History teaches us that where Mel Karmazin goes, Howard Stern goes. And vice-versa. I believe the attacks on Mel by the competition were made simply to get Howard Stern removed from Satellite Radio. Anyone who takes the time to research Howard Stern and Mel Karmazin can see clearly, that there is no greater influence on Howard Stern’s own contract negotiations, than Mel Karmazin.
There is no doubt in my mind, that without Mel Karmazin at the helm of Sirius XM Radio, satellite radio would not exist today. As an investor and subscriber, giving Mr. Karmazin his first raise since he took the helm of Sirius XM is a fair way to thank the man for saving the company and putting it on a true path to profitability. Short sighted people tend to overlook these important aspects.
Position: Long SIRI
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This article has 107 comments:
SIRI is a loser company that will muddle around for another year or so before quietly fading into the sunset. I'm hopeful that this quarterly report brings just enough good news to bump SIRI to the .60s, let me dump my SIRI penny stock at a nice profit and watch SIRI quickly disappear in my trading rearview mirror. It's foolish to believe this company will ever amount to much of anything.
Just take a look back over the last two years. Mel almost destroyed SIRI. Dear God man, what is the malfunction?
Hear is what Mel has don for his reward:
Day of the merger- IMHO, the financing for the merger was more than “quick and dirty”, it was a disaster. It provided Goldman Sacks a lean guarantee with “off the books” shares that are still being used to short the stock. Add the misrepresented news that the lean shares saturate investor’s shares and we have a second disaster.
- Public information later revealed that Mel discovered XM debt was more than anticipated. During the long wait for the FCC, XM continued to degrade. Mel should have backed away. Mel could have backed away and this can NOT be blamed on the FCC. Backing away would have saved 5 or 6 billion in “good will” debt. XM was on its way to bankruptcy in less than 8 months. The Small risk of some other company interfering with receivership was offset by the FCC having granted merger authority. Mel should have backed away.
So, Mel does the merger and now we hear mass loses of billions. Mel provides garbage justification “GOOD WILL DEBT”. That did a lot for the stock price.
Mel never had financing for a multi billion dollar merger. If you can believe that, I can find you some cheap ocean front property. “Quick and dirty”.
Advance in time to December 08. Mel needs financing again. (THIS IS PUBLIC INFORMATION WE CONFIRMED DURRING THE TAKOVER WAR) Mel had two private offers for financing on his desk 12 December 2008. Mel never told stock holders about these offers.
On 18 December 2008, during the Stock Holder Meeting, Mel got approval for a 10 – 50 for 1 rev split because supposable, “he could not get financing”. Mel turned down financing. MEL LIED TO STOCK HOLDERS! He turned down financing. The pending/possible rev-split has loomed over the stock price like a plague.
Mel turned down both private offers on 15 December 2008. By April 2009 SIRI was near bankruptcy. A take over war followed as stocks and bonds traded privately in an attempt to take SIRI away. Mel finally gave way to Liberty, Malone in the worst financing deal in US history. Mel sacrificed board seats, 40 percent saturation, and incredible interest rates plus other guarantees.
The New York Time quoted Mr. Malone, “We had made Mel private offers in December that were much better than the current deal”.
THE POINT: Every shred of bad news about SIRI since the merger has been directly caused by Mel. This gangster has nearly destroyed SIRI.
Today, we seem to be looking up. Everything is set for a nice pop in SIRI value. After everything Mel has put Stock Holders through, I can not help but wonder what Mel is about to do wrong next. What will the 2nd quarter reveal?
IMHO…
Heavy Long from Pre-Merger… and holding…
On Jul 02 05:35 AM JohnnyR wrote:
> Are you smoking crack? Karmazin has failed on so many fronts to properly
> and effectively promote the business interests of SIRI. And as a
> shareholder you expect me to feel grateful that Stern will receive
> another company-draining $500 million contract?
>
> SIRI is a loser company that will muddle around for another year
> or so before quietly fading into the sunset. I'm hopeful that this
> quarterly report brings just enough good news to bump SIRI to the
> .60s, let me dump my SIRI penny stock at a nice profit and watch
> SIRI quickly disappear in my trading rearview mirror. It's foolish
> to believe this company will ever amount to much of anything.
On Jul 02 06:44 AM SIRI-Doom wrote:
> Oh Brandon, how can you reward This gangster with such words?
>
> Just take a look back over the last two years. Mel almost destroyed
> SIRI. Dear God man, what is the malfunction?
>
> Hear is what Mel has don for his reward:
>
>
> Day of the merger- IMHO, the financing for the merger was more than
> “quick and dirty”, it was a disaster. It provided Goldman Sacks a
> lean guarantee with “off the books” shares that are still being used
> to short the stock. Add the misrepresented news that the lean shares
> saturate investor’s shares and we have a second disaster.
>
> - Public information later revealed that Mel discovered XM debt was
> more than anticipated. During the long wait for the FCC, XM continued
> to degrade. Mel should have backed away. Mel could have backed away
> and this can NOT be blamed on the FCC. Backing away would have saved
> 5 or 6 billion in “good will” debt. XM was on its way to bankruptcy
> in less than 8 months. The Small risk of some other company interfering
> with receivership was offset by the FCC having granted merger authority.
> Mel should have backed away.
>
> So, Mel does the merger and now we hear mass loses of billions. Mel
> provides garbage justification “GOOD WILL DEBT”. That did a lot for
> the stock price.
>
> Mel never had financing for a multi billion dollar merger. If you
> can believe that, I can find you some cheap ocean front property.
> “Quick and dirty”.
>
> Advance in time to December 08. Mel needs financing again. (THIS
> IS PUBLIC INFORMATION WE CONFIRMED DURRING THE TAKOVER WAR) Mel had
> two private offers for financing on his desk 12 December 2008. Mel
> never told stock holders about these offers.
>
> On 18 December 2008, during the Stock Holder Meeting, Mel got approval
> for a 10 – 50 for 1 rev split because supposable, “he could not get
> financing”. Mel turned down financing. MEL LIED TO STOCK HOLDERS!
> He turned down financing. The pending/possible rev-split has loomed
> over the stock price like a plague.
>
> Mel turned down both private offers on 15 December 2008. By April
> 2009 SIRI was near bankruptcy. A take over war followed as stocks
> and bonds traded privately in an attempt to take SIRI away. Mel finally
> gave way to Liberty, Malone in the worst financing deal in US history.
> Mel sacrificed board seats, 40 percent saturation, and incredible
> interest rates plus other guarantees.
>
> The New York Time quoted Mr. Malone, “We had made Mel private offers
> in December that were much better than the current deal”.
>
> THE POINT: Every shred of bad news about SIRI since the merger has
> been directly caused by Mel. This gangster has nearly destroyed SIRI.
>
>
> Today, we seem to be looking up. Everything is set for a nice pop
> in SIRI value. After everything Mel has put Stock Holders through,
> I can not help but wonder what Mel is about to do wrong next. What
> will the 2nd quarter reveal?
>
> IMHO…
> Heavy Long from Pre-Merger… and holding…
I can take it.... hehehe
Believe anything you NEED to believe....
“Mel had two private offers for financing on his desk 12 December 2008. Mel never told stock holders about these offers.
On 18 December 2008, during the Stock Holder Meeting, Mel got approval for a 10 – 50 for 1 rev split because supposedly, “he could not get financing”. Mel turned down financing. MEL LIED TO STOCK HOLDERS! He turned down financing. The pending/possible rev-split has loomed over the stock price like a plague. “
Mel had two offers for financing before the Dec 18 Stock Holder meeting. Malone told that story to the New York Times.
Mel lied to increase the stock issue and obtain a rev-split. At the time people were screaming that it was nothing more than a plan to conduct a penny scam. Some had the idea that Mel had a plan to take SIRI private.
Once a CEO lies to Stock Holders all bets are off. He can never be trusted. Call it conjecture if you wish. But, he lied.
I do not see Mel as inline with investors. He has no respect. We are his personal “unwashed” cash cows. We have been getting milked for two years.
However, things may be looking better if the 2nd quarter report turns good news. Like I have any choice but to hold, wait, and continue to pray.
You have to learn how to see the forest for the trees...
ADDITIONALLY, the reverse split, whether you choose to believe it or not, was to remain consistent with NAS listing requirements.
Since you know so much
On Jul 02 07:50 AM SIRI-Doom wrote:
> Ah, excuse me. I do not see lying to stock holders as “Out of Mel’s
> Control”.
>
> “Mel had two private offers for financing on his desk 12 December
> 2008. Mel never told stock holders about these offers.
>
> On 18 December 2008, during the Stock Holder Meeting, Mel got approval
> for a 10 – 50 for 1 rev split because supposedly, “he could not get
> financing”. Mel turned down financing. MEL LIED TO STOCK HOLDERS!
> He turned down financing. The pending/possible rev-split has loomed
> over the stock price like a plague. “
>
> Mel had two offers for financing before the Dec 18 Stock Holder meeting.
> Malone told that story to the New York Times.
>
> Mel lied to increase the stock issue and obtain a rev-split. At the
> time people were screaming that it was nothing more than a plan to
> conduct a penny scam. Some had the idea that Mel had a plan to take
> SIRI private.
>
> Once a CEO lies to Stock Holders all bets are off. He can never be
> trusted. Call it conjecture if you wish. But, he lied.
>
> I do not see Mel as inline with investors. He has no respect. We
> are his personal “unwashed” cash cows. We have been getting milked
> for two years.
>
> However, things may be looking better if the 2nd quarter report turns
> good news. Like I have any choice but to hold, wait, and continue
> to pray.
If this 2nd quarter report shows subscriber loses and the NasD has not extended the dollar rule past December, the split could happen soon. But lets pray not… I have not been able to confirm rumors that the NasD will or already has extended.
The name SIRI-DOOM is my nick and you can’t have it. LOL… As I explained to you last week, my nick comes from the doom that SIRI has brought my life.
And
Actually, you would be very surprised at how much I know about SIRI and Mel. I trusted the guy once…
SIRI opens at 45 cents... I said it would sit at 43 for the weekend holiday. The ENRON computers must be broke...
Hell, I would sit on a tack to get SIRI to $2.14 a share... But, I am not going to be offering any Lawinski's. One must have limits....
On Jul 02 10:03 AM between the hedges wrote:
> SIRI Doom complains = SIRI rises. Keep complaining SIRI Doom. I like
> it.
1. Sirius is now international with smart phone apps.
2. Smart phones are hot commodities. Selling like crazy.
3. Sirius is entering the used and rental car market and has signed deals with VW and Hertz.
4. Autos are rebounding.
5. Sirius' debt is refinanced.
6. Sirius has a massive ad campaign ongoing.
7. Merger synergies are taking hold.
8. Cash for clunker is speeding auto recovery.
This stock is going to upside surprise and tear higher.
Current Ratio (current assets / current liabilities):
0.36 for SIRI (near-term insolvent -- by a lot)
1.96 for industry
1.45 for sector
1.51 for S&P
LT Debt to Equity
1,369x for SIRI (just turned positive - yay)
32x for industry
95x for sector
128x S&P
Debt Service Coverage
- 6.78 for SIRI (this is why they keep issuing debt - to pay interest on old debt. and pay raises, of course)
0.42 for industry (industry also can't afford its debt, but at least they are making some positive money)
2.63 for sector
40.28 for S&P
One correction: SIRI can not sell access to a billing address outside of USA or Canada. Access is one thing. International sales is what we need.
My blog was about accountability. My blog was about Mel screwing up the past. I have strong opinion on his motivation and back ended profits. Well, I don't like what he did to stock holders. I hate being lied too. Mel has some history that needs investigation and justice. Two years of wasted time. It is about time for recovery.
SIRI should be $7.00 min. We have Mel to blame. His raise should have been equal to his 46 cent results.
Yes, thing are looking good now. Could be the success we have been waiting. Hay, if SIRI goes to $6.00 have a cool million.
Accountability, it is missing in Congress. It is missing at the SEC. My blog was about accountability....
On Jul 02 11:20 AM between the hedges wrote:
> Let me lay out a bull case that is going to sober you up:
>
> 1. Sirius is now international with smart phone apps.
> 2. Smart phones are hot commodities. Selling like crazy.
> 3. Sirius is entering the used and rental car market and has signed
> deals with VW and Hertz.
> 4. Autos are rebounding.
> 5. Sirius' debt is refinanced.
> 6. Sirius has a massive ad campaign ongoing.
> 7. Merger synergies are taking hold.
> 8. Cash for clunker is speeding auto recovery.
>
> This stock is going to upside surprise and tear higher.
the refi did 3 things:
1) it pushed the principal repayment out a couple years -- nearterm positive as it averts immediate bankruptcy, I suppose
2) it increased the overall debt and overall interest payments. They're now spending about $500mil a year in interest payments -- another nail in the coffin... they can't get out anymore - it's done.
3. It converted short term debt to long term debt to give the company significant breathing room to take advantage of the massive revenue building catalysts that I note above.
Then tell me all about how the Naked Shorts never get investigated. Then tell me about strange trades that never get investigated. Tell me about mass trades that happen back and forth with equal value that makes no since.
No accountability because people have short memories or do not want to be bothered. Move on and live in constant distrust of your neighbor.
If you want a better world you need to hold people accountable. Mel has screwed SIRI investors and you ALL KNOW IT. But don’t talk bad about SIRI because we want it to recover. People you can not have it both ways.
Accountability, it is good for you… LOL no more preaching today… heheh
They gave me an international sales line. But they do not sell unless you can provide a US or Canada billing address.
Let me know if you find something new on this...
On Jul 02 11:55 AM between the hedges wrote:
> Siri Doom: They do have international sales and an international
> sales number to call to obtain the internet based as opposed to satellite
> based service. Additionally, simply put, you can not blame Mel for
> the credit market completely freezing up and the auto market coming
> to a standstill. This is the only reason that the stock was nailed.
> Otherwise, it was clocking along great with high debt. Look, everyone
> who was long before the credit freeze and auto fallout has been hurt,
> but the crescendo bottom is in. Relmor called it and saved my butt
> from a big Dow loss. It is now time for recovery. Don't be one of
> the I wish I hadn't sold critics. Get in there.
so let's see, $500mil in interest each year (and going higher with each re-fi)...
plus the $260mil in covertibles that comes due in Dec...
'10: ~$500mil in interest plus $350 in loans coming due
'11: ~$500mill in interest plus $650 in bonds and loans due
'12: ~$500mil in interest plus $500mil in bonds and loans due
'13: ~$500mil in interest plus $1.8bil in bonds and loans due
'14: ~$500mil in interest plus $555mil in bonds and loans due
should be just fine... I mean, they are almost making money... almost... they should have no problem meeting these "long term" obligations....
thanks
I get it. Roling on the floor.... hehehheheheh LOL hehee
I don't want the split. But they keep pointing out that it's shareholder approved/board approved... a couple times now~ so that if/when it does happen people won't beable to blame them and smart people will know already what their position is. For some reason, human nature is to continually EXPECT the RIGHT thing to happen ~ that being what WE think the RIGHT thing is~ and when it doesn't then Someone just took advantage of you~ WELL, sometimes all the signs and evidence was there all along, don't keep expecting a fairytale. That's why you have to just know your position is once of chance~ It's when your all wrapped up & emotionally "invested" with the promise of this thing actually going to $1 pretty near term. The reality that it actually COULD do it, because REALLY by NOW we should know, anything is possible with all thats happened...Just don't bet your life on it because your just "trading" and by nature~ your riding the curve and it could go many ways and is always unpredictable ~ THAT's what has people acting all disturbed in these blogs ~
Also, Goldman~ If you really think they'd waist anytime playing around shorting this stock~ when they have HUGE market share to retain and go after clients to retain and major Global re shuffling in thier business going on? Then you just don't understand who they are, Really.
Have to have SOME emotional distance~ so the thing doesn't take you on such a ride~ happy-tickedoff-happy-... off~ like a maniac where YOU can't even believe what you just wrote ~ on a blog! Peace
They have the subscription revinue to pull it off if the cost can be controlled.
Jesh.. You make a sharp point...
On Jul 02 11:54 AM jswede wrote:
> "big boys"?? lol. a hi yield fund needs yield --- there's not much
> out there to be had, so they bought up the SIRI deal at 13% yield
> (not 11.25% like this author mistakenly posted; that was the coupon)
> and will ride it for a bit to collect the interest -- they will in
> large part get out well before bankruptcy. and this notion that because
> they are fund managers they are smart(er) is laughable... these are
> the same guys who rode sub-prime and Lehman into huge losses...<br/>
>
> the refi did 3 things:
>
> 1) it pushed the principal repayment out a couple years -- nearterm
> positive as it averts immediate bankruptcy, I suppose
>
> 2) it increased the overall debt and overall interest payments. They're
> now spending about $500mil a year in interest payments -- another
> nail in the coffin... they can't get out anymore - it's done.
Sent: Monday, June 22, 2009 1:03 PM
To: Sirius Consultants; Sirius Employees; Sirius On-Air Talent; XM Radio Global
Subject: Message from Scott Greenstein / SIRIUS XM App
To All Employees:
I would like to share with you the tremendous response to the launch of our SIRIUS XM App for iPhone and iPod touch. Only four days (96 hours) after going live, our App rocketed to become the No. 1 Top Free Music App downloaded from the iTunes' App Store. It is also the No. 2 Top Free App download. The actual number of downloads of our App had reached 513,319 as of late Sunday. That is one of the fastest download rates by any App.
As our App took the top spot on the Music App rankings last week, the music icon button flipped over to SIRIUS XM from Pandora Radio. The press has taken notice. As CNBC reported Friday night, when its Silicon Valley reporter broke into a segment to report that our new App was climbing the App Store rankings, "the reason this (App) is significant is it opens up SIRIUS XM to a huge potential market."
The speed and height that our App is reaching demonstrates just how highly attractive and valued our exclusive programming may be to millions of iPhone and iPod touch users. New subscribers are getting their first chance to hear the superior programming of SIRIUS XM, and existing subscribers have access to us almost anywhere they go. The response to the App from this new large audience reinforces our belief that everything worth listening to is now on SIRIUS XM.
Finally, the launch of the App required cooperation across many departments at SIRIUS XM and I want to thank everyone involved for their dedication to the project and to the varied talents they brought to making it a successful launch.
Scott Greenstein
President and Chief Content Officer
SIRIUS XM Radio
there's about 65mil cable subscriptions in the US -- Siri is going to get 54?
took them 15 years to get near 20mil and that's now dropping... if you believe that you deserve to lose all your money.
SIRI still holding strong in todays down movement...good sign? add more? thoughts?
thanks
On Jul 02 12:40 PM nycsiri wrote:
> sorry...just registered...first comment/question...thanks in advance:
>
>
> SIRI still holding strong in todays down movement...good sign? add
> more? thoughts?
>
> thanks
From your numbers 850 million to 1.8 billion or more a year in scary debt.
Running my own numbers, I see it as doable. If Mel stops screwing up. SIRI has time to pay down and an expanding market.
Now define doable.... We all make our money (back) before the belly turns up... LOL
On Jul 02 12:20 PM jswede wrote:
> 3rd 'thing' was within (2) : higher overall debt and higher debt
> service
>
> so let's see, $500mil in interest each year (and going higher with
> each re-fi)...
>
> plus the $260mil in covertibles that comes due in Dec...
>
> '10: ~$500mil in interest plus $350 in loans coming due
>
> '11: ~$500mill in interest plus $650 in bonds and loans due
>
> '12: ~$500mil in interest plus $500mil in bonds and loans due
>
> '13: ~$500mil in interest plus $1.8bil in bonds and loans due
>
> '14: ~$500mil in interest plus $555mil in bonds and loans due
>
> should be just fine... I mean, they are almost making money... almost...
> they should have no problem meeting these "long term" obligations....
Don't take my word for it, read the reviews on the Apple App Store. I never seen such an long-awaited App scoring so low on the chart after its launch. Loyal customers for years are now threatening to unsubscribe from SIRIUS or not renew their contracts for that sole reason - I am part of that group and I had 5 receivers - I was pouring more than $450/yr in SIRIUS/XM for the last 5 years - but now, enough is enough. The slashing of all the differentiating music channels over the last 5 years, and specially during the last XM merger; the availability of cheaper (and free) musical alternatives like LastFM, Pandora, doesn't make SIRIUS attractive anymore. It leaves (only) the numerous fans of H.Stern to support SIRIUS now - but the last iPhone App denied them the pleasure, for a fee!
Too look at performance and financing strategies is good, but lets face it, the fundamentals on this company is linked to one thing - customer satisfaction and product offering. None of it is happening under this administration. Satellite radio is on its way to be replaced by mobile products using 3G (4G in 2010) and wifi at home and soon in cars with the new 4G cell technology that will link your car with the cell network while you are driving. We already see those iPod ready car stereo - moving radio another step towards obliviousness. I give SIRIUS another 1 to 2 years max of struggles and good memories of what could have been a great technology.
What incentive? Mel's option is locked at a buy per share of 43 cents. He makes 60 million even if SIRI drops down to 1 cent, one penny.
LOL... Incentive for a crook gangster who makes more on SIRI in daily shorting than he does from good production. Wow, that is funny.
I wish people understood the true nature of how Mel has been making millions on SIRI. The man has intentionally destroyed SIRI.
Yes, this is exactly what I have been asking. I have called SIRI order line 14 times this week and just asked how busy the day... I wait on hold for 3 to 5 min but get the same operator 2 out of 5 calls.
She, the SIRI operator said they were doing mostly upgrades to existing accounts. A few new accounts and a few stop accounts. She will tell you what is going on if you use some charm.
I don’t think the App is the great savior of this quarterly report subscription loses. It would have been better if Stern and Sports are on the App. Maybe next quarter.
I think we need to brace for “less than good” news. Hope I am wrong....
I have been looking all day to find the article that names the Resolution Strategy that SIRI board recently voted to put back in action. It is a Resolution to the Company Tax Rules that was removed just after Mel took over. They voted to restore it just after the take over war.
Anyway, what it does is distribute tax advantages to the stock holders in the event of a take over. This removes the tax advantage takeover candidate.
Last month a Seeking Alpha blog had a few people debating about the resolution. It was funny to realize the distribution tax advantage comes down to 3 to 5 dollar per share holder. But that is not why the resolution is in place.
Someone help me recall the name of the resolution. I did confirm it once and wish I could find the link to show you.
On Jul 02 12:05 PM between the hedges wrote:
> One more item to remember. Don't forget this. Remember it. Tuck it
> away. A company with losses is wrapped up as a takeover candidate
> because of the tax advantages that it allows. If you look at the
> industry, a consolidation of radio media into internet and mobile
> makes since because of the visual ads that can be done without breaking
> up ad free music. Look at a Yahoo page. They now have Yahoo music.
> What they should do is acquire Sirius for the tax advantages and
> utilize their mobile and internet technology to parley click based
> ads into the revenue stream. More to follow. Keep your eyes open.
> Innovation is upon us.
No, No, NO, you never want to see that happen. I would rather lose all my money.
If AT&T combine all the services of (Satellite TV, Satellite Radio, Long Distance Calling, existing percent of the nations phone service, existing percent of Cell Phone service and the Internet) this would created a nightmare of controlled media government control.
Do you have any idea what that would do to consumers? Hay, it is one thing to be an invester trying to make money. It is quite a other thing to be a power hungered “New World Order” control freak. You put all those services in the hands of any one company spells disaster to the entire American way of life!
Oh yah, SIRI would shoot up on the news. We would make money. But can you imagine a closed censored government controlled Internet, and all media? Disaster!!!
After the federalization of companies already this year, AT&T mergers would get FCC approved in a few months. That should tell you it is a bad thing…
If you have faith in your government like I do, this article tells it all. I know the FED has been pumping and dumping stocks for several months. I know the market is rigged. I know GS is running the entire scam for the FED.
This article tells the story. Then it tells you if anything is ever uncovered to reveal the manipulation, THEY CAN NOW BLAME THE RUSSIANS.
Does anyone else see this as very suspicious?
REUTER Story July 5, 2009
A Goldman trading scandal?
Matthew Goldstein is a Reuters columnist. The views expressed are his own.–
Did someone try to steal Goldman Sachs’ secret sauce?
While most in the United States were celebrating the Fourth of July holiday, a Russian immigrant living in New Jersey was being held on federal charges of stealing secret computer trading codes from a major New York-based financial institution. Authorities did not identify the firm, but sources say that institution is none other than Goldman Sachs.
The charges, if proven, are significant because the codes that the accused, Sergey Aleynikov, tried to steal are the secret sauce to Goldman’s automated stock and commodities trading business. Federal authorities contend the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major financial institution generate millions of dollars in profits each year.
The platform is one of the things that gives Goldman an advantage over the competition when it comes to the rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and using secret mathematical formulas, allows the firm to make highly-profitable automated trades.
The criminal case has the potential to shed a light on the inner workings of an important profit center for Goldman and other Wall Street firms.
Full Story
blogs.reuters.com/grea.../
Does anyone else see this as very suspicious?
REUTER Story July 5, 2009
A Goldman trading scandal?
Matthew Goldstein is a Reuters columnist. The views expressed are his own.–
Did someone try to steal Goldman Sachs’ secret sauce?
While most in the United States were celebrating the Fourth of July holiday, a Russian immigrant living in New Jersey was being held on federal charges of stealing secret computer trading codes from a major New York-based financial institution. Authorities did not identify the firm, but sources say that institution is none other than Goldman Sachs.
The charges, if proven, are significant because the codes that the accused, Sergey Aleynikov, tried to steal are the secret sauce to Goldman’s automated stock and commodities trading business. Federal authorities contend the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major financial institution generate millions of dollars in profits each year.
The platform is one of the things that gives Goldman an advantage over the competition when it comes to the rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and using secret mathematical formulas, allows the firm to make highly-profitable automated trades.
The criminal case has the potential to shed a light on the inner workings of an important profit center for Goldman and other Wall Street firms.
Full Story
blogs.reuters.com/grea.../
Stock Report
Jun 26, 2009
NASDAQ Symbol:SIRI For fiscal year 2009, analysts estimate that SIRI will earn $-0.10. For the 1st quarter of fiscal year 2009, SIRI announced earnings per share of $-0.07, representing 70% of the total annual estimate. For fiscal year 2010, analysts estimate that SIRI's earnings per share will grow by 80% to $-0.02.
S&P
Stock Report | Jun. 27, 2009 | NNM Symbol: SIRI
HighlightsFrom about 19 million at the end of 2008, we expect SIRI's customer base to decline sharply in 2009, to slightly more than 18 million, on lower gross adds and higher average self-pay monthly churn. We expect some improvement in 2010, though against a backdrop of anemic trends in the retail distribution channel, and a notable slowdown in the ramp-up of auto OEM factory-installed units. With average revenue per user pressured by family plan and multi-year discounts, we project essentially flat 2009 total revenues of $2.45 billion, rising to $2.6 billion in 2010.
SIRI sees over $300 million of adjusted 2009 EBITDA, we think partly on merger-related synergies (recently quantified near $425 million). In 2010, we see improved variable contribution margins, and further declines in subscriber acquisition costs (SAC) per gross add.
After D&A and significantly higher interest expense on recent refinancings, we see a 2009 net loss per share from operations of $0.16, narrowing to $0.06 in 2010. In December 2008, shareholders approved a reverse stock split of between 1-for-10 and 1-for-50.
In April 2009, SIRI adopted a shareholder rights plan under which any acquisition of 4.9% or more of its outstanding shares would trigger a significant dilution in such ownership. Subject to a shareholder vote by June 30, 2009, the plan aims to preserve the value of significant tax assets associated with SIRI's tax net operating loss carryforwards, and would continue in effect through August 1, 2011 (unless earlier terminated or redeemed by the board).
Risks to our recommendation and target price include a sizable equity dilution; further liquidity challenges; continued losses and negative free cash flow; a sharp deceleration in the auto OEM channel; competition from other entertainment outlets; and some governance concerns with a pending rights plan ("poison pill').
Our 12-month target price of $0.50 is based on relative enterprise value to projected 2009 revenues. SIRI recently had about $6.8 billion of unused net operating loss carryforwards.
Our risk assessment reflects high risks related to exposure to the auto industry's woes; potential liquidity issues; relatively high stock price volatility; somewhat limited operating history; and governance concerns related to a pending shareholder rights plan.
In April 2009, SIRI adopted a shareholder rights plan under which any acquisition of 4.9% or more of its outstanding shares would trigger a significant dilution in such ownership. Subject to a shareholder vote by June 30, 2009, the plan aims to preserve the value of significant tax assets associated with SIRI's tax net operating loss carryforwards, and would continue in effect through August 1, 2011 (unless earlier terminated or redeemed by the board).
Last update: 7/6/2009 8:00:00 AM--#1 Free App in the Music category delivers SIRIUS XM's exclusive sports, entertainment, comedy, and commercial-free music channels to users of iPhone and iPod touch
NEW YORK, July 6, 2009 /PRNewswire-FirstCall via COMTEX/ -- SIRIUS XM Radio (SIRI) today announced its application for iPhone and iPod touch has been downloaded over 1 million times from the App Store. The milestone was achieved within 2 weeks of availability.
The SIRIUS XM app debuted on the App Store on June 18 and quickly became the top free app in the Music category on the App Store. The SIRIUS XM app lets users access 120 channels of groundbreaking and critically-acclaimed talk, sports, entertainment and commercial-free music.
"Reaching more than 1 million downloads so quickly is a strong testament to our world-class programming and SIRIUS XM's instant brand recognition," said Scott Greenstein, President and Chief Content Officer of SIRIUS XM Radio. "Our goal is to give people access to the best audio entertainment wherever they go with what we think is the best music and audio entertainment application available on the App Store."
Users of iPhone and iPod touch with a SIRIUS XM Premium Online subscription have access to exclusive sports and entertainment programming from SIRIUS XM's satellite radio service, including Oprah Radio, MLB Home Plate, Martha Stewart Living Radio, SIRIUS NFL Radio, NHL Home Ice, PGA TOUR, Opie & Anthony, Mad Dog Radio with Chris Russo, Playboy Radio, The Foxxhole comedy channel presented by Jamie Foxx, Blue Collar Comedy Radio, CNN, Fox News Talk and NPR. The app also offers subscribers access to commercial-free music featuring exclusive shows from SIRIUS XM's satellite radio service such as Bob Dylan's Theme Time Radio Hour and Tom Petty's Buried Treasure, as well as 24/7 music channels such as Bruce Springsteen's E Street Radio, The Grateful Dead Channel, Eminem's Shade 45, Jimmy Buffett's Radio Margaritaville, "Little Steven" Van Zandt's Underground Garage and Outlaw Country channels, B.B. King's Bluesville, Willie Nelson's Willie's Place, Elvis Radio, Siriusly Sinatra, Metropolitan Opera Radio and many others.
Users of iPhone and iPod touch who download the SIRIUS XM app also have access to exclusive, Internet-only showcase channels, such as SIRIUS XM Bootlegs, SIRIUS XM Talk Showcase, SIRIUS XM Music Showcase, and SIRIUS XM Comedy Showcase, featuring multiple plays of SIRIUS XM's acclaimed shows. Exclusive programming from SIRIUS XM's satellite radio service, such as Here's Barbara with Barbara Walters, Oprah's Soul Series, The Jamie Foxx Show, specials from Blue Collar Comedy and Raw Dog Comedy, selections from the Artist Confidential series, and selections from exclusive live SIRIUS XM music performances, including pop, rock, hip-hop, country, jazz, and more, are available for the first time on the iPhone and iPod touch.
SIRI operator said they were doing mostly upgrades to existing accounts. A few new accounts and a few stop accounts. She will tell you what is going on if you use some charm.
subscription loses.
subscription loses.
subscription loses. Maybe next quarter.
Waiting for the next 4 cent bounce...
This is the best action we are going to get with a looming rev-split. Play the spread and get your money back 5 percent at a time. LOL this is work...
SIRI is going to be a penny for a long time...
The action on SIRI will remain a penny spread. The larger traders, GS, and Mel will milk SIRI 3 or 4 cents at a time in large volume.
WHY?
For every UP, the pressure from the profit spread will send it back DOWN.
The only thing that will change this is the Rev-Split or “MEGA GOOD NEWS”.
Sorry…
Yep, that is it. In your own words. I picked SIRI and it stinks...
You only think it is a good thing!!!!
HERE IS WHAT ALWAYS HAPPENS AFTER!!!
AIG shares continue dive after reverse stock split
----------------------...
AIG stock continues falling after insurer does reverse stock split, warns of possible losses
Last week, shares of the New York-based insurance giant went into free fall after a 1-for-20 reverse stock split was approved at the company's annual shareholders meeting on June 30. Shares of AIG closed at $1.16 that day, which is equivalent to $23.20 assuming the reverse split.
finance.yahoo.com/news...=
Last week after reverse stock split
$23.20 the reverse split.
This week continue dive
Shares dropped $2.21, or 13.7 percent, to $13.98 in early afternoon trading.
You only think it is a good thing!!!!
ALWAYS HAPPENS AFTER!!!
Full Story
finance.yahoo.com/news...=
"manipulate markets in unfair ways."
THE DAM SOFTWARE CAN MANIPULATE MARKETS IN UNFAIR WAYS!!! THE FBI SAID IT!!!
DO YOU THINK GOLDMAN WAS USING IT FAIRLY????
If the stolen information, or trading code, is allowed to go to a competitor who can start trading with it, "the bank itself stands lose its entire investment in creating this software to begin with, which is millions upon millions of dollars," warned U.S. prosecutor Joseph Facciponte, according to a transcript of Saturday's proceeding.
He added that because of the way this software interfaces with the various markets and exchanges, the bank has warned it could be used to "manipulate markets in unfair ways."
it could be used to "manipulate markets in unfair ways."
it could be used to "manipulate markets in unfair ways."
it could be used to "manipulate markets in unfair ways."
DO YOU THINK GOLDMAN WAS USING IT FAIRLY????
Full Story
www.reuters.com/articl...
For fiscal year 2009, analysts estimate that SIRI will earn $-0.10. For the 1st quarter of fiscal year 2009, SIRI announced earnings per share of $-0.07, representing 70% of the total annual estimate.
$-0.07, representing 70% of the total annual estimate
Now look twice. It is a negative number. That is a bad thing.
If the 2nd Q also shows like this, SIRI is losing much money...
You only think it is a good thing!!!!
HERE IS WHAT ALWAYS HAPPENS AFTER!!!
AIG shares continue dive after reverse stock split
You only think it is a good thing!!!!
reverse stock split
Low Volume all week!!!
Take a look at my post and the linls to the GS theft.
Then
Take a look at stock volume on everything for past two days.
The volume and the drop off of pump & dump in the market is obvious. The FBI is looking close at GS so, computers must be off line.
The Goldman Sacks computers make Enron look silly.
No justice, not ever. Just a small setback for GS.
Cool... It doesn’t mean anything to me until SIRI is over 2.14 a share.
Let it go to 6.00 a share and I will have the money to move the heck out of this corrupted nation of communist bankers...
Mr. Stupid
On Jul 08 12:50 PM SIRI-Doom wrote:
> Ha ha ha. Standard?
>
> Cool... It doesn’t mean anything to me until SIRI is over 2.14 a
> share.
>
> Let it go to 6.00 a share and I will have the money to move the heck
> out of this corrupted nation of communist bankers...
Mr. Stupid
On Jul 08 12:50 PM SIRI-Doom wrote:
> Ha ha ha. Standard?
>
> Cool... It doesn’t mean anything to me until SIRI is over 2.14 a
> share.
>
> Let it go to 6.00 a share and I will have the money to move the heck
> out of this corrupted nation of communist bankers...
Last Trade: 0.3970
--------
“ Investors have shrugged off 1 million App. Downloads. What investors want to hear is 1 million new subscribers. “
“ SIRI is set to lose 1.6 million subscribers this year. If half of the App. downloads become subscribers it will only offset the loses. “
--------
Well, the street has said what I have been saying for two weeks. But SIRI never reports any news. Mel makes you wait. The more bad the news, the longer the wait.
When will SIRI report the 2nd Q? Will we hear from Mel on the last minute, of the last hour, of the last day?
Mr. Stupid
I have a trigger dump at 36 cents. If it goes to 36 we have bad news coming. I am getting all the way out. I might get back in at 21 cents but will need to eval at that time.
DUMP ON ANY NEWS OF REV-SPLIT
I also have orders to my broker to DUMP ALL SIRI on any news of a Rev-Split. I am NOT going to be a Cow for Mel again. I will buy back in after the split is driven back down, and it will be driven way down...
If we had new subscriptions from the Ipod App, Mel would be providing daily leaks of subscriber numbers. If Mel wanted action on his stock, he would be building up to the Q report on good news leaks that would raise this pig. But, that is not happening.
Keep your ears clean. Be ready to dump SIRI.
Yes, Mel Karmizine (Karmacrook) could go down in the history books as a big man. The first man in the history of the United States Stock Market to single handedly destroy a billion dollar corporation with monopoly over an entire industry.
SIRI from 12.00 to 8 cents in 11 months.
SIRI the only company to ever merge a bankrupt 11 billion dollar debt company XM, with a working model company SIRI.
SIRI less than 8 months after the merger, Stock saturation over 83 percent in new issue and guarantees
SIRI DEBT
2010: ~$500mil in interest plus $350 in loans coming due
2011: ~$500mill in interest plus $650 in bonds and loans due
2012: ~$500mil in interest plus $500mil in bonds and loans due
2013: ~$500mil in interest plus $1.8bil in bonds and loans due
2014: ~$500mil in interest plus $555mil in bonds and loans due”
Way to go Mel!!! Big Man!!!
How about some news on the New Subscribers from the Ipod App.???
Be ready to dump SIRI.
In the meantime, Mel is doing a good job now of trying to untie the product from simply new car installation (even though that is growing) and is putting the product into certified pre owns and on our mobile devices. One thing that goes unmentioned is the potential or international exposure, which I assure you that he is working on.
Go on with your conspiracy theories, bashing of Mel, and bashing of my beloved radio company that is a stellar product. You in the long run will be merely the critic and panicked daytrader who was afraid to take long term risks and invest in the next generation technology. My friend, it is the warrior who counts, not the critic. Hang in their Sirius longs and keep rocking to the awesome music and content. This company and stock will prevail. Big Boy Malone and Mel know what they are doing. Mel has incentive to get the company rocking and the stock above .43 cents as the majority of his pay relies on it. Rest assured, he will be doing things to ensure this occurs and I want to be along for the ride. Have a nice weekend, Siri Doom. Remember, Wall Street is on vacation this week so the panicked lemmings are ruling the street this week. The big boys will return to excellent entry points next week and earnings will likely be . . . better than expected.
Wow you are such an optamist.
FACT NOT THEORIES and I AM VERY LONG...
Why don't you just stop selling and admit you work for SIRI?
SIRI from 12.00 to 8 cents in 11 months.
SIRI the only company to ever merge a bankrupt 11 billion dollar debt company XM, with a working model company SIRI.
SIRI less than 8 months after the merger, Stock saturation over 83 percent in new issue and guarantees
SIRI DEBT
2010: ~$500mil in interest plus $350 in loans coming due
2011: ~$500mill in interest plus $650 in bonds and loans due
2012: ~$500mil in interest plus $500mil in bonds and loans due
2013: ~$500mil in interest plus $1.8bil in bonds and loans due
2014: ~$500mil in interest plus $555mil in bonds and loans due”
Did you forget SIRI was delisted from the 1000 2000 and 3000 fund lists last week?
Most funds are bared from trading under 5.00 stocks and without the 3000 fund SIRI can't even trade as part of the index.
SIRI is now fully retail and alone...
What kind of wakoe trader are you?
LOOK AGAIN they are NOT adding radios to pre-owned cars!!!
SIRI is only providing re-activation for a NEW OWNERS on QUALIFIED pre-owned cars. "Qualified", as in a radio was installed when the car was new...
Please do some investigation. Your the same person who keeps saying SIRI is selling International. I keep telling you they can not sell a subscription to any BILLING ADDRESS outside of the US and Canada...
Are you twisting and distorting information to intentionally mislead people?
Oh yah, sure they do. Like GS, Goldman Sucks is ready to sell SIRI all day. GS is always ready to use those shares Mel gave away to guarantee the merger. Only thing is, GS sells SIRI SHORT....LOL
Back Door ways... LOL... No fund is that desperate...
Well, you made me chuckle... LOL...
Also, please recall GM came out of bankrupcy this morning. Your memory seems to need some help. Do you remember Siri management's statement that it renegotiated the Siri contract with GM and it was much more beneficial to Sirius owners and shareholders?
I have been in and out of SIRI stock for 5 years. I know the stock well. I use and like the service. But I hate the poor management.
I know and have talked to Mel Karmazin. I had to learn the hard way. Anyone outside of his circle gets burned. Are you in his circle?
Mel has intentionally screwed stock holders. I know allot about how and why. I know about his past, current, and some future legal battles. The man is a gangster crook.
SIRI is NOT a stock for the avg retail or day trader. I know more than most and still got burned. I don't recommend the stock and most of the street would rather sell bed sheets than SIRI stock.
Yes, SIRI is sitting nice with car deals, the Ipod App, and Internet sales. SIRI should be at 7.00 now. Why is SIRI only 40 cents today?
SIRI is a nasty stock with a very bad history. SIRI has many obstacles to overcome before retail investors will risk the farm again. SIRI has massive debt. SIRI has a poor balance sheet. SIRI stock is saturated. But the big reason most will not come to SIRI stock is the risk of a REV-SPLIT.
You can argue semantics and be emotional as you like. Just be carful and expect to get burned in Mel’s play ground. Those of us who know Mel, also know his desire above all else is to get the REV-SPLIT done.
I advise you to set up a fast exit plan. I see the signs that say 2nd Q is going to crash SIRI again.
Good luck...
Stop! You're killing me! LOL That's just plain mean to the long term investors. (they won't listen anyway, lol)
"Someday soon, going with him, someday soon"
LOL
LOL, you remind me of the story of a young woman (of questionable employ) living in “Trump Tower” got herself slapped around for talking about Mel’s stinky feet.
Maybe she could get you some of Mel’s Toe Cheese.
I hoping to buy back at .33 - .35 myself.
Mr. Stupid
Yes, Mel Karmizine (Karmacrook) could go down in the history books as a big man. The first man in the history of the United States Stock Market to single handedly destroy a billion dollar corporation with monopoly over an entire industry.
SIRI from 12.00 to 8 cents in 11 months.
SIRI the only company to ever merge a bankrupt 11 billion dollar debt company XM, with a working model company SIRI.
SIRI less than 8 months after the merger, Stock saturation over 83 percent in new issue and guarantees
SIRI DEBT
2010: ~$500mil in interest plus $350 in loans coming due
2011: ~$500mill in interest plus $650 in bonds and loans due
2012: ~$500mil in interest plus $500mil in bonds and loans due
2013: ~$500mil in interest plus $1.8bil in bonds and loans due
2014: ~$500mil in interest plus $555mil in bonds and loans due”
Way to go Mel!!! Big Man!!!
How about some news on the New Subscribers from the Ipod App.???
Be ready to dump SIRI.