SEC Makes a Move on Naked Short Selling: Too Little, Too Late for Sirius 130 comments
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By Brandon Matthews
I first began writing about naked short selling more than one year ago, when Sirius XM Radio’s (SIRI) common stock first came under attack by hedge funds. I am told that I helped to inspire the documentary Stock Shock, in which I not only played a role but inevitably helped co-produce as well. I have reported on the efforts of Senator Ted Kaufman, whom I applaud for the immense strides he has made in bringing the issue of naked short selling to the forefront of Congressional debate. I have also been highly critical of a slow moving Securities And Exchange Commission. With Monday’s press release from the SEC announcing sweeping changes in the regulation of naked short selling, those who have fought this fight with Satwaves and others can stand tall knowing that our efforts have not been in vain.
Nothing can be done at this point to right the wrongs of the past, such as making restitution to investors in Sirius XM Radio, Overstock.com, Lehman Brothers and Bear Sterns, to name only a few of the companies that fell victim to the practice. The SEC’s announcement is nonetheless a major victory. Sirius XM Radio fell victim to nearly 300 million shares of phantom stock shares that were sold short and not delivered in July of 2008 alone, as cries of foul play fell on deaf ears. Those 300 million counterfeit shares turned out to be merely a drop in the bucket.
Now that the damage is done, the SEC for the first time has finally acknowledged that “short selling can be used as a tool to manipulate the market,” and further acknowledges that “naked short selling” is harmful to both investors and companies alike. The agency is now taking long overdue action by making permanent a rule to curtail naked short selling. Rules however are meant to be broken and the SEC has yet to prove that it's capable of enforcing its rules to any realistic extent.
The Commission promises to impose penalties if a clearing firm does not purchase or borrow shares to close-out a “fail to deliver” resulting from a short sale in any equity security "by no later than the beginning of trading, on the day after the fail first occurs (T+4).” This should help to protect the numerous companies that are expected to receive NASDAQ delisting notices in the coming weeks, including Sirius XM Radio, from further abuses.
Falling short in reinstating the uptick rule which would no doubt render front-running (flash) trading programs worthless, the Commission also took steps to increase the transparency of short sales by proposing the daily publication of short sale volume, a monthly delayed disclosure of short sale transaction information, and bimonthly disclosure of failures to deliver.
Defenders of the removal of the uptick rule tend to fall back on the argument that no downtick rule is required to buy a stock. This argument makes no sense, however, because there is no law that allows an investor to buy a stock “short.” Either the person using such an argument is a moron, or that person feels that other people are gullible. It simply makes no sense. Agreeing to sell a security that you do not own is far different than selling one you do.
Satwaves and I are proud to have been a part of this effort, and rest assured we will continue our efforts in protecting individual investors, when the SEC holds a public roundtable on the issues on September 30, 2009.
Positions: Long SIRI
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This article has 130 comments:
I am not the only one that can see this coming???
-Delisting
-Rev-Split 50 for 1
-SIRI takes a nose dive...
We lose again....
I will be dumping all my share very soon...
So today, are we to believe that action will finally take place to stop these intrusions into the marketplace?
We will wait and see....
Scot's Slant
Mel KarmaCrook provided Goldman Sacks a loan guarantee of SIRI stock on the day of the merger.
Goldman Sacks uses the guarantee stocks to short and hedge the loan.
It was Mel's "quick and Dirty" merger that provided mass shorting... Get a clue...
Thanks for being on the frontline! Can't believe they failed to reinstate the uptick rule in the same measure. Will be nice to see the short positions reported once it starts to happen. It's hard to find any info on "who" has any of the 147 mil shorts that are still out there. Seems to me- the other big institutional holders like Jennison Associates, Vanguard, Apollo Mgmt and Holdings, Oppenheimer, might all like to make a return on investment for their clients and put a little pressure on the short holders in various ways- wouldn't you think? Certainly a great development for SIRI and in the coming QTR, I'd be willing to bet they will lose their glorious position as Largest Short Position.... Can't wait for Aug 6!!!
LONG SIRI- Peace
the reinstatement of the uptick rule is another problem that sec must action. i hope they voluntarily reimplement it without having to be pressured.
Here is an idea
Put a 30 percent tax on all short trades. Sell it to the public as paying for child health care. It worked for Ciggarets.....
On Jul 28 01:08 PM fpc wrote:
> sec was never too receptive to the petitions and requests by small
> time investors to ban naked short selling. credit belongs to senator
> ted kaufman and other group of senators who forced sec to act. <br/>
>
> the reinstatement of the uptick rule is another problem that sec
> must action. i hope they voluntarily reimplement it without having
> to be pressured.
Fact 1: The SEC recognized that short selling could be manipulative way back in the 30s when the tick test was created.
Fact 2: THE UPTICK RULE WOULD NOT HAVE SAVED SIRI! The spread is/was too small. If the spread was larger, than yes it would help. Since the spread is small, you can sit on the offer and get short all day long. People long SIRI are clinging to an outdated rule due to uninformed blogs like this one. The uptick rule would not have saved the stock. In fact, if you look at chart, it was on the decline at the same rate prior to the removal of the rule. The naked short selling was the issue that needed to be immediately addressed.
On Jul 28 01:08 PM fpc wrote:
> sec was never too receptive to the petitions and requests by small
> time investors to ban naked short selling. credit belongs to senator
> ted kaufman and other group of senators who forced sec to act. <br/>
>
> the reinstatement of the uptick rule is another problem that sec
> must action. i hope they voluntarily reimplement it without having
> to be pressured.
www.thestreet.com/_yah...
Five Tech Stocks That Won't Survive Another Downturn
No. 1: Sirius XM Radio
Tech's hottest cash fire has finally reduced its stock to embers.
The satellite radio shop has plunged deeply into red ink, accumulating a total deficit of $9.46 billion. Given that Sirius shares are trading at around 40 cents, it's obvious that investors aren't confident that pay radio stock has much upside.
Sirius lost customers for the first time ever in the first quarter and is on track to lose 1.6 million subscribers this year. Free cash flow for the first quarter was a negative $4 million.
With so much riding on new car sales, Sirius faces big challenges this year.
A likely scenario is that Sirius will collapse into the arms of its lifeline creditor and big debt holder Liberty Media (LMDIA Quote), owner of DirecTV (DTV Quote).
With friends like Liberty Media waiting in the wings, Sirius equity holders have reason to worry.
Sirius equity holders have reason to worry.
Actualy, thestreet is a Cramer group. He has hated SIRI since Mel crossed him on national TV witth the "Quick and Dirty". Cramer lived in a hotel with armed guards for 3 months because of death threats over SIRI loses... Mel truly screwed Cramer...
On Jul 28 01:45 PM JamesPS wrote:
> The Street.Com Article is bunk. It should be completely discarded
> as biased jiberish. I contains nothing but stale outdated claims
> put out by shorts.
On Jul 28 01:53 PM SIRI-Doom wrote:
> LOL... So, like, are you an optamist? hehehehe
>
> Actualy, thestreet is a Cramer group. He has hated SIRI since Mel
> crossed him on national TV witth the "Quick and Dirty". Cramer lived
> in a hotel with armed guards for 3 months because of death threats
> over SIRI loses... Mel truly screwed Cramer...
However, what is being sold? If you buy a share
it does not come from the company, unless it is
an initial public offering (IPO) or a secondary offering,
but it comes from somebody else who was willing to
sell his shares. In "naked short selling" people are
buying shares which do not exist. It is as if they
have given their money to somebody but they have
gained in return does not exist. How many phantom
shares are there out there? At some point, the SEC
will say, I think, oops, those shares you think you own
do not exist. Hence, you will be guilty of fraud if you try
to sell them. But if you allow those phantom shares to
be bought and sold, then the question, what is the total
number of shares outstanding for a given company? If
this question cannot be answered then the stock market
will turn into a giant casino, serving no other purpose but
to cater to them who speculate rather than invest, and
there is a difference. For speculators are dangerous
people who hurt others, as well as themselves. If I thought
the stock market was a casino, I would not hold shares in
anything connected to it. But as long as you can tell how
many total shares outstanding legally exist for a given
corporation, those shares carry legal voting rights, dividend
rights, etc. What we may be witnessing is an example of
"white collar terrorist activity" an attempt to destroy private
property rights and bring about a more socialist system of
government. Capitalism and communism are essentially the
same thing, "creeping socialism". You have to separate the
static definition from the dynamic definition to see this. The
Western economic system is now moving towards a more
Soviet style economic system, while the Soviet Union has
changed its name to Russia, and are attempting to merge
with the West. Who is playing "catch up"? Maybe both are
making changes, as this merger takes place. Will the stock
market exist in a few more years? Look at Moody's...If that
company's business model is made irrelevant, it will send a
major shock wave through the world economy as to how
financial capital is raised and invested. The public role will be
greatly diminished. Scary things are happening but people
are more interested in arguing which way share prices are going,
then seeing the system as it truly is, and is truly becoming.
However, what is being sold? If you buy a share
it does not come from the company, unless it is
an initial public offering (IPO) or a secondary offering,
but it comes from somebody else who was willing to
sell his shares. In "naked short selling" people are
buying shares which do not exist. It is as if they
have given their money to somebody but they have
gained in return does not exist. How many phantom
shares are there out there? At some point, the SEC
will say, I think, oops, those shares you think you own
do not exist. Hence, you will be guilty of fraud if you try
to sell them. But if you allow those phantom shares to
be bought and sold, then the question, what is the total
number of shares outstanding for a given company? If
this question cannot be answered then the stock market
will turn into a giant casino, serving no other purpose but
to cater to them who speculate rather than invest, and
there is a difference. For speculators are dangerous
people who hurt others, as well as themselves. If I thought
the stock market was a casino, I would not hold shares in
anything connected to it. But as long as you can tell how
many total shares outstanding legally exist for a given
corporation, those shares carry legal voting rights, dividend
rights, etc. What we may be witnessing is an example of
"white collar terrorist activity" an attempt to destroy private
property rights and bring about a more socialist system of
government. Capitalism and communism are essentially the
same thing, "creeping socialism". You have to separate the
static definition from the dynamic definition to see this. The
Western economic system is now moving towards a more
Soviet style economic system, while the Soviet Union has
changed its name to Russia, and are attempting to merge
with the West. Who is playing "catch up"? Maybe both are
making changes, as this merger takes place. Will the stock
market exist in a few more years? Look at Moody's...If that
company's business model is made irrelevant, it will send a
major shock wave through the world economy as to how
financial capital is raised and invested. The public role will be
greatly diminished. Scary things are happening but people
are more interested in arguing which way share prices are going,
then seeing the system as it truly is, and is truly becoming.
If you want to understand the system, read both what the "far
right" and the "far left" have to say, or better yet, get a copy of
'...And the truth shall set you free' by David Icke and only
consider the part that doesn't sound crazy.
Compare his writings with those found on wsws.org.
Both lament the disappearing manufacturing sector in
the US. But do they see the good? For is it wrong to
rob from rich countries to give to poor countries? Well,
yes. If you want to open up a shoe manufacturing plant
overseas, why shut the others down over here? The
US economic planners need to think like Nucor Steel,
and coordinate mini-factories with local consumption
needs, because the price of oil may not come down to
1950s pre-inflationary prices, in a "permanent" (stable)
way.
are not holding "phantom shares"? Should you trust
the statement they send to you in the mail?
Looking like 38 is hard to get. But, Wed is my cut date on that target. We knew the 2Q report would effect the spread as we get close. Make ajustment to the spread after the smoke clears from the report.
IF we don't get 38 I am thinking about sitting out that block of shares for possible down after the report. I am not going in at 42 at this time as it will put me "all in".
I can always JUMP in on the up news... Ajustment will be needed, hope for an up...
On Jul 28 03:05 PM jmsithy wrote:
> well I guess the 3 cent spread is out the door it was fun while it
> lasted .42 is the new .38
www.deepcapture.com/mi...
On Jul 28 12:33 PM noendinsight wrote:
> Thanks Brandon.
shocked
Monthly subscribers may be shocked to see their satellite-radio bills increase starting Wednesday.
Someone who was paying $12.95 a month for Sirius or XM five months ago, and streaming online when away from the activated receiver, will now be paying $17.92 a month between the Web access and music royalty add-ons. Pulling off a 38% price hike during the deepest recession in decades would be gutsy.
Subscriber levels tanked the last time Sirius XM imposed higher fees, in March. Will people pay or will there be more defections?
On Jul 28 05:03 PM SIRI-Doom wrote:
> shocked
> shocked
> Monthly subscribers may be shocked to see their satellite-radio bills
> increase starting Wednesday.
>
> Someone who was paying $12.95 a month for Sirius or XM five months
> ago, and streaming online when away from the activated receiver,
> will now be paying $17.92 a month between the Web access and music
> royalty add-ons. Pulling off a 38% price hike during the deepest
> recession in decades would be gutsy.
>
> Subscriber levels tanked the last time Sirius XM imposed higher fees,
> in March. Will people pay or will there be more defections?
On Jul 28 04:45 PM SIRI-Doom wrote:
>
> Looking like 38 is hard to get. But, Wed is my cut date on that target.
> We knew the 2Q report would effect the spread as we get close. Make
> ajustment to the spread after the smoke clears from the report.<br/>
>
> IF we don't get 38 I am thinking about sitting out that block of
> shares for possible down after the report. I am not going in at 42
> at this time as it will put me "all in".
>
> I can always JUMP in on the up news... Ajustment will be needed,
> hope for an up...
>
> On Jul 28 03:05 PM jmsithy wrote:
On the other hand "naked short selling" is illegal.
Do you know the difference?
Mr. Stupid
On Jul 28 12:49 PM Scot's Slant wrote:
> Scot's Slant here. Interesting article. One problem though. For years,
> the government has understood that short selling causes considerable
> damage to shareholders and companies alike. And for several years
> the government has promised to come down hard on those who profit
> from short selling, while in truth, it seems little has changed to
> stop this abusive practice.
>
> So today, are we to believe that action will finally take place to
> stop these intrusions into the marketplace?
>
> We will wait and see....
>
> Scot's Slant
>
I notice you ask relmar aka. remlor many questions. Why? Oh, don't answer. We already know the answer. lol
Mr. Stupid
On Jul 28 03:07 PM Come on Guys Lets get Sirius! wrote:
> Remlor, whats ur take on what the SEC is enforcing? How does it effect
> us shareholders? Thanks
Frankly, I would like to see all shorting outlawed. It does not benefit investors or companies. Its great for insider trading - oh wait - thats illegal....
It is hard to day trade or play the spread with a standard account. That would frustrate me. I upgraded to margin so i can buy and sell on the same day. But, It does get confussing waiting on the trades to post in the account.
On Jul 28 06:20 PM jmsithy wrote:
> Im in at least til wed as well I put a 1/2 block at .42since I was
> going to put back in anyways on Wed because I can not sell it until
> 3 trading days and I dont want to miss the boat when it gets pumped
> up
You are just borrowing money to buy the shares. In effect, you don't really own them, the people who loaned you the money own them as collateral - that's why there are margin calls.
So yes, you can "buy short".
Can you tell me what now happens to the phantom shares?
Don't those outstanding recorded shorts still have to be covered? I believe they do. These people still have a short position that can move against them. They just didn't have to actually have the shares on hand at that time, but they are still open shorts and must be covered.
First of all I call him Remlor because I like that name better. lol
Relmar acutally really knows whats going on. He has been right so many times. Its because of people like him on here that I have averaged down to .80 cents now from 3.00.
Relmar, SL62, Killer, and a few others are why im still sane right now from losing soo much hard earned cash. Im in a really good position right now and Relmar has very good guidance. My nose isn't brown, ha ha.. Relmar knows his shit Period. I dont! SO again, Relmar, whats ur take on the new news from the SEC?
Many Thanks
Tony D
you keep typing the same information regarding the merger financing and GS. I am forced to ask you to provide this board with your proof that Mel did a convertible deal at the merger with GS (as you keep saying) that they are currently hedging. c'mon man..please provide some factual references to support your thesis. The time is now.
On Jul 28 12:49 PM SIRI-Doom wrote:
> SIRI is shorted but not naked...
>
> Mel KarmaCrook provided Goldman Sacks a loan guarantee of SIRI stock
> on the day of the merger.
>
> Goldman Sacks uses the guarantee stocks to short and hedge the loan.
>
>
> It was Mel's "quick and Dirty" merger that provided mass shorting...
> Get a clue...
well-summarized....
On Jul 29 06:59 AM R A F wrote:
> With six trading sessions left until the August 6 release of 2nd
> Qtr. earnings and guidance data, let's look at the prevailing framework:
> There will be no intervening significant news for SIRI between now
> and August 6 (save the usual "bashing" from the usual suspects -
> Motley Fool, Street.com, etc. - which is now "old hat" and certainly
> not significant) so price action for SIRI is likely to continue in
> its present mode over the next week - firm on pullbacks, resilient
> on dips, and biased toward further testing of the upside. In my opinion
> - markets are already looking beyond this upcoming 2nd Qtr. release,
> toward the next two releases into yearend '09 and early 2010. This
> is because the 2nd Qtr. will reflect past economic conditions (first
> half of '09 when the U S economy was in dire straits) and that period
> of time now seems to be over, with a recovery underway. For this
> reason - markets are likely to treat much of the data within the
> release as "old news" and focus more intently on the guidance going
> forward - which is likely to be more positive than originally anticipated.
> SIRI's participation in two platforms of great potential - the iPhone
> App and the replacement of the ageing U S auto fleet should keep
> SIRI investors now focused on positive long term potential - well
> beyond that indicated with this 2nd Qtr. release on its own. This
> should bias all trading over the near term - tending to keep present
> SIRI investors remaining long through this period and keeping shorts
> increasingly nervous as inadequate supply comes on the market for
> purposes of covering until prices push to the next higher level.
Nothing like a little bios in your stock mentors... LOL
Don’t get me wrong. Most of them mean well. They just refuse to believe anything bad about SIRI even after it comes out in the news. IMHO That is unhealthy emotional bios.
On Jul 29 02:11 AM Come on Guys Lets get Sirius! wrote:
> Mr. Stupid, that name fits u well, good job.
>
> First of all I call him Remlor because I like that name better. lol
>
>
> Relmar acutally really knows whats going on. He has been right so
> many times. Its because of people like him on here that I have averaged
> down to .80 cents now from 3.00.
>
> Relmar, SL62, Killer, and a few others are why im still sane right
> now from losing soo much hard earned cash. Im in a really good position
> right now and Relmar has very good guidance. My nose isn't brown,
> ha ha.. Relmar knows his shit Period. I dont! SO again, Relmar, whats
> ur take on the new news from the SEC?
>
> Many Thanks
>
> Tony D
Anyone that defends not having an uptick rule or Naked Short Sellers are not Investors, just paid Bashers by crooks & thieves..
www.marketwatch.com/st...
Those guys would never tell you to sell SIRI if bad news was leaking out about the 2Q report. (None heard yet). They would all say it is lies… LOL…
Been their and done that, even got the scars.
It is ok to hear people with a bios. But, you can not make good investment decisions unless you are willing to hear all sides.
FYI, as a retail investor, you have to have margin to short and "buying short" makes no sense by definition. I'm not knocking on the people who post here because frankly, everyone is here to learn and grow as investors. There are time when terms and situations are viewed incorrectly due to poorly informed bloggers and posters. I'm just trying to shed a little light on some realities of the market and clear up confusion such as the difference between the uptick rule and naked short selling. The latter is the issue. The uptick rule doesn't affect stocks with low spreads remotely to the extent it would for higher priced stocks with wider spreads.
On Jul 28 10:58 PM splintar wrote:
> I'm with you but "buying short" is the same as buying on margin.
>
>
> You are just borrowing money to buy the shares. In effect, you don't
> really own them, the people who loaned you the money own them as
> collateral - that's why there are margin calls.
>
> So yes, you can "buy short".
>
> Can you tell me what now happens to the phantom shares?
>
> Don't those outstanding recorded shorts still have to be covered?
> I believe they do. These people still have a short position that
> can move against them. They just didn't have to actually have the
> shares on hand at that time, but they are still open shorts and must
> be covered.
For anybody who cares, here's what I wrote on June 28 in response to a question Mr. Stupid posed to me that got me thrown off the board.
" Mr. Stupid, obviously no, I do not know the difference between "short selling" and "naked short selling." and neither do I know Jack nor do I know "#@%!."
"And Mr. Stupid, I never said short selling was "illegal." For anybody who cares to see what I wrote, look at the top of todays post; I think it's number three or four.
"And there is one more thing: Mr. Stupid, in the future, please do not misquote me -- it does not look good on my resume'."
Scot's Slant
On Jul 29 09:24 AM SIRI-Doom wrote:
> AND
> Those guys would never tell you to sell SIRI if bad news was leaking
> out about the 2Q report. (None heard yet). They would all say it
> is lies… LOL…
>
> Been their and done that, even got the scars.
>
> It is ok to hear people with a bios. But, you can not make good investment
> decisions unless you are willing to hear all sides.
My only reference to a margin account was for buying, selling and buying on the same day. Things get twisted so fast on these boards…
Shorts be dam. Shorting has a use but has been abused. Same with dark order trades, abused. The people who are doing the abusing are the same people running the system. The entire system is a mess…
Routing trades and dark order. This is all computer aided curuption. We are learning a new scam everyweek.
A must read...
www.marketwatch.com/st...
On Jul 29 09:19 AM pistol1406 wrote:
> US Regulators Seen Moving To Ban Dark Flash Orders Soon
>
> www.marketwatch.com/st...
My take on the SEC news? Blowing smoke up our asses is my take. Uptick rule doesnt come back ,you know the agenda, and you know the short game isnt over yet. They might be positioning for it to be over, but they are delaying it for a reason. Not red tape. Its BS is what it is. Not one person in this country that feels the ability to pump a stock down with shorting is "healthy" for the market. If you dont think a stock is worth it, you sell it, you dont short it. And you especially shouldnt be shorting it with shares you dont even have yet. SHO list displays which companies are being illegally mainpulated. The SEC feels like providing the list of companies getting screwed is somehow enough. It actually just gives a list of who to short with no fear.
What a joke.
Announced new employment contract for Scott A. Greenstein, President and Chief Content Officer, extending his employment at increasing salary levels through 2013 and granting him options on 27,768,136 shares at .43, vesting in installments through 2013. Does this sound like a company in trouble to you? Definitely not to me! Is this an indication of better things ahead for Sirius XM? You decide.
Honestly, I don’t know if SIRI will live past 2013. A big chunk of debt 1.2 biliion will be due. Sure the debt might be pushed back in another refinancing. I am not sure what SIRI credit line will be at that time. Allot can happen in a year or two.
A bigger problem will be the interest rate. The FED will soon be increasing interest to hold back inflation. What will happen to SIRI when it needs refinancing at interest rate of 8 to 18 percent?
We have just seen the largest increase in minimum hourly wage ever in history. If that is not a sign of planned inflation, just what is a sign? The FED will have no other choice but to raise interest rates.
Oh, yes home sales are up. People “in the know” see intrest sky rocketing in the near future and they are taking cheap credit now.
THE 2Q REPORT – TRUE DOOM
Call me a pessimist. I see SIRI continued loses $390 million in cash flow. I see 200,000 subscribers loses. Talk about EBACRAP has always been hype for the unwashed SIRI lovers and the media. SIRI near term is a sad story.
Someone please keep telling me about December looking good. I need to hear it even if it is less than true.
Call me a pessimist. I see SIRI continued loses $390 million in cash flow. I see 200,000 subscribers loses. Talk about EBACRAP has always been hype for the unwashed SIRI lovers and the media. SIRI near term is a sad story.
Someone please keep telling me about December looking good. I need to hear it even if it is less than true.
How can you predict $390 million in lost cash flow? You realize that Q1 (historically the WORST quarter of the year) only showed a cash flow loss of 4 million?
At the beginning of the comments for this article, you mention Mel's lending of shares to GS for shorting purposes. You are correct about that, however if the shares were there to be lent, then obviously THEY WERE NOT FAILED TO DELIVER. Keep that in mind. The number that Brandon is talking about in the article is FAILURES TO DELIVER. This is on TOP OF any normal legal shorting of the stock.
Satwaves is working on a special report. We are already facinated by what we are seeign in the data. Im sure you guys will be too.
David "Newman" Phillips
www.satwaves.com
newman@satwaves.com
The poor people maker, Standard & Poors, 06/19/2009
*Day of the Ipod – STARS reported this with no mention of the App.
-------------
After D&A and significantly higher interest expense on recent refinancings, we see a 2009 net loss from operations of $0.16 a share. In December 2008, shareholders approved a reverse stock split of between 1-for-10 and 1-for-50.
In February 2009, SIRI entered a two-phase pact under which Liberty Media (LMDIA: $20) invested a total of $530 million for 12.5 million of SIRI's preferred shares (convertible into 40% of its common stock), helping the company avert a potential near-term bankruptcy filing, in our view.
In March, the company reported what we saw as lackluster 2008 fourth quarter results, with continued challenges across its primary automotive and retail channels. Management also withdrew its longer term financial targets, a prior source of improved visibility.
Our 12-month target price of $0.50 is based on relative enterprise value to projected 2009 revenues. In addition, the company recently had about $6.8 billion of net operating carry forward losses, a notable asset, in our view.
Risks to our recommendation and target price include potentially significant equity dilution; potentially significant near-term liquidity challenges; continued losses and negative free cash flow; a sharp deceleration in the auto and retail distribution channels; and competition from other entertainment outlets.
Our risk assessment reflects high risks related to a near-term debt refinancing amid a credit crunch; exposure to the auto industry's woes; post-merger integration risk for a nascent satellite radio category with continued losses and negative free cash flow; and increased competition from other entertainment options.
-------------
Ipod application – No Stern – Mistake or Mel bomb to insure the rev-split?
Desperate for SIRI good News?
Moody’s assigned a Caa1 rating, which is below junk, to XM’s proposed $350 million senior secured notes.
Everyone loves to hate SIRI. Mel earned every bit of the bashing. He likes it. He could even be paying for bashers to keep the stock under the NasD one dollar delisting rule.
Sirius, as the story pointed out, turned another corner this year by extending its losses not just in dollars, but now in hundreds of thousands of subscribers. The pay radio player is on track to lose 1.6 million customers as car sales slump in 2009. This doesn't bode well for the stock. Tech's hottest cash fire, we wrote, had finally reduced its stock to embers.
Michele G. from Wisconsin wrote that we had failed as journalists. "Your role should be to provide information from all perspectives to allow the reader to come to their own conclusion. If you don't do this you have an ulterior motive and have violated ethical standards."
Michele's feedback is a somewhat high-minded version of the usual evil-intent accusations.
One might argue that creating the illusion of balance in a story listing stocks to avoid is somewhat similar to selling luxury services like pay radio during frugal times.
So to be fair, yes, Sirius could sidestep the collapsing auto industry, it could dodge the ad spending slowdown, it could stem some of its subscriber losses, and the company could even lower the flames in its cash furnace.
But the point is, Sirius has serious financial challenges that would be extraordinarily difficult to overcome if the economy continues to tank.
With more than half of Sirius' new subscribers coming from car sales and new cars delivered to dealer lots, it's not easy to believe customer growth is all that healthy. Sirius lost 404,422 customers in the first quarter as the auto industry shrank. In the second quarter, when GM followed Chrysler into bankruptcy, it's conceivable that Sirius did even worse on the subscriber front.
Sirius argues that fewer car customers mean lower subscriber acquisition costs, but that's sort of like saying you are saving money on your commuting costs after you lost your job.
And finally, getting his two-cents in, Mike F wrote that we had already reported the tough year ahead for Sirius' subscriber losses in June when the stock was at 35 cents. The stock, he points out, is now at 43 cents.
Obviously there's still some heat in those embers, just try not to get burned.
www.thestreet.com/_yah...
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STARS Report === NONE -
The "big boys" all say SIRI is doomed...
But you guys with the filthy language should invest deep in SIRI.
More to the point: I consider the fact that two days ago Sirius XM extended the employment contract of Scott A. Greenstein, President and Chief Content Officer through 2013, at solid and increasingly high salary levels, along with an option grant of 27,768,136 shares that vests in installments through 2013. The fact that another senior officer sees this kind of potential for Sirius XM is an indication of health, and I take the filing of this release (8K) just days before the 2nd Qtr. release of earnings and guidance to be a positive indication for the stock. I interpret this as another officer wanting to lock up investment levels at .43 into the future before the stock materially begins to trade above this level - "all in at 43 cents" as relmar2003 has stated above. Risk/reward ratios are now definitely biased heavily toward the upside, as bankruptcy is assumed to be off the table for the foreseeable future - as indicated by the actions just taken by an officer with certain knowledge - Scott Greenstein - in agreeing to his new pay package. With bankruptcy out of the equation, there is no way this stock should remain below 50 cents over the intermediate term. Markets are now likely to view the upcoming release as only the first of several releases into the future that are likely to show significant improvements for Sirius XM, now that new platforms for distribution are emerging (iPhone App, and auto industry developments). Longer term potential remains projected toward 1.00+, based on strengthening technicals, and the continuing short position that must be covered remains a strong influence, as well.
(1) I believe there exists a toxic waste dump of uncovered naked short sales from the past. The SEC desperately needs to investigate the toxic waste that was a consequence of bankruptcies like WorldCom and Enron. I believe such an investigation would reveal hundreds of billions of $ that naked short sellers pocketed by manufacturing additional shares through naked shorts that were never covered! Perhaps that's how market makers can report quarterly profits in the billions while foolhardy retirees are forced to eat cat food due to market losses.
(2) SEC penalties? Sorry to be cynical, but fining naked short sellers maybe $10 million when the market maker made $1 billion profit is laughable. Naked short selling will continue unabated unless the SEC awards lawbreakers with long jail sentences.
(3) Just to illustrate, today, I pulled up the 7/10/09 short position for AMED, a home healthcare company (I don't own it):
Float short short % of float Institutional ownership
26.83MM 8.89MM 33.1% 119% of float
So, let me understand the above statistics: Institutions own 119% of AMED? Gee, how is that possible? You and I both know that somebody has a HUGE naked short position in the stock. Will they ever cover the short? Probably not. The SEC is not doing its job unless they do an investigation and put some people behind bars. If a layman can easily spot a naked short position, what could an SEC investigator find? DUHH - nothing, because they aren't even looking.
Thank you again for your superlative efforts; let us not yet declare victory until the President of a hedge fund/market maker becomes Madoff's roommate. The fraud of naked short selling is far more damaging to US financial markets and capital formation than 100 Bernie Madoffs.
approximately 6 million shares (less than the usual extremely high volume of preceding weeks and months) and virtually all of this today (and most recent days) has taken place fighting over a few 1/100ths of one cent! Clearly this is the old "shell game" - passing the volume among a few coordinated high speed computer types and is in no way reflective of pure, legitimate, retail demand to either buy or sell. Investors do not make decisions of this sort based on 1/100 of .01. This is all designed to suck in the public, in the hopes that some legitimate supply might come on the market to fill shorts who are now increasingly nervous - and with good reason!
finance.yahoo.com/news...
static on satellite radio, where deals with General Motors and BMW to install receivers in new cars have failed to boost Sirius XM Radio shares above $1. The company lost $62 million in the first quarter and its subscription fee is about to jump by almost $2 a month thanks to a music royalties ruling in Congress. Worse yet, Sirius's iPhone application was unseated as the top-selling music app in iTunes by Pandora, the free music service.
"We originally thought it was a subscription business and did that for all of three weeks before we realized that it had to be an advertiser-supported free service," says Tim Westergren, co-founder of Pandora Media.
Thursday
NEW YORK -- CBS Corp. releases second-quarter financial results.
PHILADELPHIA -- Comcast Corp. releases second-quarter financial results.
EL SEGUNDO, Calif. -- DirecTV Group Inc. releases second-quarter financial results.
BEVERLY HILLS, Calif. -- Live Nation Inc. releases second-quarter financial results.
NEW YORK -- Sirius XM Radio Inc. releases second-quarter financial results.
NEW YORK -- Thomson Reuters Corp. releases second-quarter financial results.
ATLANTA -- Wendy's/Arby's Group Inc. releases second-quarter financial results.
The volume has been low since the Russle Index adjustment. Most funds can not access SIRI directly via $1 and $5 rules. They can not access SIRI indirectly because SIRI is no longer indexed.
SIRI is a retail only stock until it can comply with the value rules and be indexed again. All down hill on the road to Mel’s 50 for 1 Rev-Split.
Most of the volume is computer priming for pump and dump… Corruption…
By Eric Fox
stocks.investopedia.co...
Short interest data released last week showed that many investors increased their bearish bets on several companies about to report earnings, losing money in the process. Earnings season is not yet over, however, and these investors may yet come out whole.
so that's why~ the will see thier 1.5 million shares possibly reduced to like 300,000 so why not take advantage of the high quanities to sell some now~ after the fact it will be a slow recovery of thier original value no matter what ~ and they get to dip in with thier options later :-) sweet deal!
While I admit, there has been horrible actions taken on shorting etc... that really~ should have been better regulated for ANY company heading into merger or when an entire market is under attack....
But~ seriously, you have to ask your self why you keep "expecting" the market to treat you fairly:-) It's doesn't. Ever. It's completely against it's normal nature:-) This is NOT the FAIR...:-) Good luck everyone...
Yes, management has an investment in SIRI. The 43 cent lock on employee purchases is more like insurance. The plan for a Rev-Split is likely to set SIRI stock $3 to $22 and slam it back down to 43 cents again as shorts attack it all over again. Setting a lock on employee shares has written SIRI value in stone at 43 cents.
TIME TO LIGHTEN UP
>>Current holders of SIRI have had ample opportunity over the last few months to lighten up,
Who won’t sell on bad news? People do not hold stock for love. Sane investors will dump SIRI on any hint of bad news.
INSIDER SELLING RISE
>>Has anyone noticed the insider selling of shares that Sirius Xm's Officers are doing "Religiously"every month?
Yes, I noticed SIRI employee selling shares. On a smaller avg, this is not unusual because payment in shares is taxed 15 percent .vs. the wage tax. However, insider dumping has been on the rise for several months. Alarm bells should be ringing. When the employees start dumping, I get alarmed.
A LONG GOIING SOUTH
I am looking for 45 cents before the Aug 6th 2Q report. I thinking strongly about selling all shares on Aug 5th…
Mel’s egg headed ego would be leaking good news if he had any. SIRI was never quiet when the stock was looking good. But, SIRI has been silent for every Q report since the merger. Wehave had all bad news since the merger. Silence from Mel translates to sell…
On Jul 30 07:27 PM SIRI-Doom wrote:
> SIRI Management Insured
>
> Yes, management has an investment in SIRI. The 43 cent lock on employee
> purchases is more like insurance. The plan for a Rev-Split is likely
> to set SIRI stock $3 to $22 and slam it back down to 43 cents again
> as shorts attack it all over again. Setting a lock on employee shares
> has written SIRI value in stone at 43 cents.
>
> TIME TO LIGHTEN UP
Tags: Commentaries, Citadel, crash, doomsday, Goldman Sachs, High-Frequency Trading, SEC
Michael Durbin is no Wall Street rebel. But Durbin, who has been on the front lines of high-frequency trading (HFT) since its early days, isn’t afraid to buck the industry line
Durbin says it’s reasonable to wonder whether Wall Street’s unfettered embrace of algorithmic automated trading could be setting the stage for a future meltdown.
Reuters
blogs.reuters.com/comm.../
If it worries you that insiders are selling shares that they received in lieu of bonus money, than your an idiot. Period.
Siri-Doom: How come your boring lately? Why do you keep copying and pasting old rants, and irrelevent news stories full of lies, then repeat them, and call yourself a long. You own zero shares. ZERO.
Success out of money
When you can trade a $700.00 1978 car for $4,000.00 you should do it.
Interest is on the way up. Car makers will be providing new creative financing. Now is the time to buy without creative financing.
America has cash for a good deal. If you are still working and your job is safe, you probably have not felt the economic decline. The price of food and toilet paper may be the only increases some people notice for a year or two.
However, true unemployment is 26 percent with more jobs and small companies being lost every month. Bank fails in the last 7 months total 68 closed by the FDIC. Today, Routers posted 14 more banks given warning of failure.
Cash for clunkers has run out of money this week. No more funding is expected. With all the bad news in the economy, I can not fathom recovery for SIRI subscribers based on “Cash for Clunkers”. In numbers, the program was too small when you consider SIRI needs 400,000 to 1.6 million monthly confirmed subscribers.
All we can hope is that SIRI is able to keep subscriber loses low. Management will need to get its act together and start some new, truly innovative sales pitch or product. SIRI management needs to do things without mistakes and on time. The Ipod App as we all know was a day late and a dollar short. Addressing used car market was 3 years late and still a dollar short.
If management continues the current performance, they will not survive to the date of projected profitability. SIRI death will be painful if nothing changes.
Malone is licking his chops...
On Jul 31 07:46 AM R A F wrote:
> With "Cash For Clunkers" obviously a tremendous success - running
> out of money after only one week - there is every indication that
> the resurgence of the auto industry is underway, in response to the
> ageing fleet of cars in the U.S. This can only be a benefit to Sirius
> XM into the future, as most of these cars will come with satellite
> radio availability. The subscription business model is still extremely
> potent and viable and will be a source of significant revenue increases
> for Sirius XM over the long tgerm.
On Jul 31 09:24 AM R A F wrote:
> SIRI-Doom - Those comments were not meant to imply that "Cash for
> Clunkers" is directly a factor in Sirius XM's future revenue stream.
> The reason to watch demand under the "Cash for Clunkers" program
> is merely to assess the degree to which the ageing auto fleet in
> the U.S. is spurring the revival of the auto industry now - and into
> the future. As the auto industry revives to meet the demand for replacement
> of the ageing U.S. auto fleet, Sirius XM will surely benefit. This
> platform for growth, along with the smartphone and wireless device
> platforms, implies great potential for SIRI into the future.
>
Sputnik stayed in the air transmitting and relaying Amateur Radio for over 25 years before NASA turned it off for national security. Yes, National Security was the reason and it was a one way switch to off. But, look at the performance 300maw of 25 years.
What is up with XM Satellites losing battery cells after just a few short years? Why are the solar cells failing? They have reduced output by 1/3 this year. Coverage is reduced drastically for every 100maw output. The report from SIRI-XM on Satellites from the XM merger is something to be worried about.
Don’t forget XM was down for 14 hours because of Satellite failure. SIRI made a big deal about being up and accessible 99.5 percent after the XM outage.
If XM birds continue to degrade, NASA will be charging SIRI-XM to clean up space junk. The future may forget about XM Satellite being an assets…
Volume: 2,518,104
Talk about SIRI sp hovering… Wow and how…
This is Goldman Sacks computer corrupted trading…
On Jul 31 10:36 AM SIRI-Doom wrote:
> Day's Range: 0.42 - 0.4280
> Volume: 2,518,104
>
> Talk about SIRI sp hovering… Wow and how…
>
> This is Goldman Sacks computer corrupted trading…
Ask: 0.4247 x 200
LOL hehehehe... Who do they think they are fooling?
Take a look at this
Wall Street meets The Matrix
Reuters
blogs.reuters.com/comm.../
On Jul 31 10:40 AM jmsithy wrote:
> so there are no more investors out there for this kind of suspicious
> like IRobot a machine has taken over will there be more
Best Possible Prediction for SIRI 2Q is “Loses Less than Expected”
No News
SIRI was never quiet when the stock was looking good. But, SIRI has been silent for every Q report since the merger. We have had all bad news since the merger. Silence from Mel translates to sell…
A lose for SIRI is a continued troubled company. This 2Q will not forgive continued loses. In a true fair market SIRI would drop below 30 cents on any loses this report.
Mel better be sitting on some great news. I don’t see that possible and also very unlike Mel as he would be bolstering the media with EBACRAP and other hype.
PS… Feed that cat…
On Jul 31 11:04 AM Yomama90210 wrote:
> This just in...My neighbor said their cat had a dream last night
> and sirius xm to hit .65-.81 august 6-7. Call me superstitious But
> I'll buy on that more than anything siri-doom posts.
I just tossed 70,000 shares at 45 cents… I was no expecting that today…
Placed a limit to buy back 60,000 at 428 cents.
I am going to ride this Goldman Sacks computer like Bronco Billy…
I noticed SIRI employee selling shares. On a smaller avg, this is not unusual because payment in shares is taxed 15 percent .vs. the wage tax. However, insider dumping has been on the rise for several months. Alarm bells should be ringing. When the employees start dumping, I get alarmed.
On Jul 31 12:19 PM Mr. C wrote:
> Can anybody shade some light on all the insider selling lately
The Board of directors and a few other senior leaders were given thier contractually owed/earned/awarded numbers of shares recently. The same 5 members have sold off a few (looks like less than 4% of each of thier share totals- i.e.- they were given between 1-3 million each and have sold 80-200k shares lots- since now all of then have between 2-5 million remaining- they are not selling out!)
Anyway, they are contractually limited to a % and timeframe they are allowed to sell. So- they set up 4-5 sells each every QTR because it's thier money, they need a new Mercedes, the ex-wifes allimoney is due, kid needs to go to Haavad BS etc... There is not a sell OUT- they probably want to use the cash in hand to SHORT a few terestrial radio stations!!!
HOLDING LONG
PEACE
Agree 100%!
Just read news bullet that the Gov't is wanting to add 2 Billion to the program. That 2.9 bil total now. Hmmm. That divided by $4500 equals 465,000 car sales on this program alone! If every major auto manufacturer is installing receviers in most of thier new models and certified pre-owned is now a venue as well. --- Might not be the holy grail, but it is certainly a sweet impact on next QTR.
PEACE
On Jul 31 01:05 PM R A F wrote:
> The extremely strong response to the "Cash for Clunkers" program
> is definitely a significant development, as this indicates substantial
> demand for auto replacement will likely continue at an accelerated
> pace into the future.
I am holding my last block of 40,000 shares long for the last minute and wishing for 50 cents.
Just like last quarter, ride the up tic in blocks of sell off. Sit out the report and come back in after the disaster.
But, be ready for the trickster and have your finger on the buy button on the morning of the report. Never trust a gangster to be predictable.
My current buy open orders are looking for a bounce and a fall.
50,000 limit at 38 cents. From last week
60,000 limit at 428 cents. Placed today to work a bounce if we get it.
I have no open sell orders. My last 40,000 long are going to be hard to part with at 50 cents.
On Jul 31 12:53 PM jmsithy wrote:
> .44 cents after 1 pm GS computer must be working its magic woudlnt
> sell now unless it goes to .48
Monday can go either way most likely will go up some more until close enough to .50 but thats how it pumps
Tell me how to make money on SIRI today! Who cares about next year? We have had all the forward looking gizmo hype. We have bills to pay now that can not wait for next year.
REMMBER?
--We are off setting future outlook today with 3 billion written off in GOOD WILL loses. We see this as a positive negative in the upcoming forward backward estimates.
--We are please share holders have been dooped into providing permission to issue 300 million more shares and a rev-split from 20-50 to 1. We feel this will positively overt any issue of SIRI ability to cover near term debt.
-Ah, so sorry. We may go belly up because we refuse to listen to reason.
-------
MAN stop with the forward looking propaganda. Nothing forward looking 2 years ago is looking so good today. Nothing last year is looking good. Heck, nothing last quarter is looking good.
We have bills to pay. Tell me what SIRI will trade for today and tomorrow.
On Jul 31 01:39 PM 1more4me wrote:
>
> Agree 100%!
> Just read news bullet that the Gov't is wanting to add 2 Billion
> to the program. That 2.9 bil total now. Hmmm. That divided by $4500
> equals 465,000 car sales on this program alone! If every major auto
> manufacturer is installing receviers in most of thier new models
> and certified pre-owned is now a venue as well. --- Might not be
> the holy grail, but it is certainly a sweet impact on next QTR.
>
> PEACE
>
> On Jul 31 01:05 PM R A F wrote:
Please do not respond to my posts- ever- even this one. You are a clown! Unlike those that debate your infantile jibberish, I could careless if you have an opinion on anything. Like the old pro Relmor has told you numerous times. "show the proof". In fact, right now, prove to me you are not a post board Liar. Since I can see each and every trade, at every price, at every second of the day- please tell me when (HH:MM:SS) that you sold your big 70 k lot today. You freaking liar- It hit .45, 3 times between 11:52 and 11:58, between 5 and 11 trades occured each time, the biggest lot 9800 shares, the most traded in all three times it hit.45 was 62,000. YOU WERE NOT ONE OF THEM! you freaking douche! Leave the actual trading and money making to us grown-ups. You got game- prove it!!! You want mine? See my picture- Look at it, LOOK- LOOK-PUNK!!! That's 270% by JUNE. The drop- I took $100k out to buy a bull dozer-- and as of today back to 244% You can't touch my action! I've traded in and out of SIRI over 45 times this year- and this is slow! I got not short position left, I'm a pump baby! Pumpin SIRI over a buck - anyway anyhow! It's the only direction left- I want to preach it to every possible buyer out there- BUY SIRI and HOLD!
Doom, no reply needed- I don't care, won't reply---don't cry! Just shut-up and go away!
Always great to hear a productive and informative comment from a fellow clown.
Keep up the work relm...
On Jul 31 03:09 PM 1more4me wrote:
> Siri doom,
> Please do not respond to my posts- ever- even this one.
On Jul 31 12:18 PM SIRI-Doom wrote:
> Weeeee
> I just tossed 70,000 shares at 45 cents… I was no expecting that
> today…
>
> Placed a limit to buy back 60,000 at 428 cents.
> I am going to ride this Goldman Sacks computer like Bronco Billy…
On Jul 31 12:18 PM SIRI-Doom wrote:
> Weeeee
> I just tossed 70,000 shares at 45 cents… I was no expecting that
> today…
>
> Placed a limit to buy back 60,000 at 428 cents.
> I am going to ride this Goldman Sacks computer like Bronco Billy…
And by the way: Rather than recieving a bonus check this year, the insiders were given stock. This stock was set to sell in 20 payments throughout this year and next. You know what? There is another planned sale on 8/5!! (I know you would have made a big deal on this one, since it is the day before the CC. You would say it is proof that the quarter was bad or some crap like that. I know how your type thinks.)
These are planned sells that insiders have no way of changing. The sales were decided by the company, not the officers themselves.
You want the rest of the dates? Here you go: 8/5/09; 8/19/09; 9/3/09; 9/18/09; 10/2/09; 10/21/09; 11/4/09; 11/18/09; 12/3/09; 12/23/09; 1/6/10; 1/21/10; 2/5/10; 2/18/10; 3/4/10.
Once again, I offer EVERYONE to come to Satwaves to see the TRUTH. http:/satwaves.com
David "Newman" Phillips
newman@satwaves.com
Yah, that is all good...
I do not want anything to do with you, Mel, or any of you SIRI cronies. So, stop asking.
You’re not going to get my email address to ID. I will not let you hassle me. So, stop asking.
where is my money MFers.
Undertone should stay firm into this release and gradual upside momentum should prevail through the early part of the week. Potential is indicated toward .50 during this phase of trading, prior to the Thursday release. Markets are now clearly looking ahead, toward future potential, as opposed to reacting to data reflecting the negative economic backdrop of the first 1/2 of the year.
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.
STARS Report 07/25/2009
12-Mo. Target Price
$0.50
$0.50
$0.50
In May, SIRI reported lackluster results for the 2009 first quarter, which was notable for the company's first ever loss of subscribers in its primary OEM channel, amid continued auto industry woes, which recently culminated in bankruptcy filings by two of Detroit's Big Three manufacturers.
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.
$6.8 billion of unused net operating loss carryforwards.
loss In May
$-0.07, representing 70% of the total annual estimate
70% of the total annual estimate
loss
The street estimated only 10 cent loss per share for the year off 2009.
SIRI lost .07 cents per share in JUST the 1st Q!!!
So, with only 3 cents remaining to lose for the entire year, SIRI can not, NOT beat street esimates. Any lose will be a nightmare for this stock.
This is why Mel is silent...
Someone else can hype the poison pill. Then, I will explain the truth...
On Jul 31 05:47 PM *Newman* wrote:
> Amazing how you did not respond to any of my comments SIRI Doom.
> After all of my offers, yuo have not even attempted to email me to
> straighten anything out, get set up to argue your case on Satwaves,
> or even provide a shred of proof to any of your statements. I find
> that particularly strange for a non-basher.
>
> And by the way: Rather than recieving a bonus check this year, the
> insiders were given stock. This stock was set to sell in 20 payments
> throughout this year and next. You know what? There is another planned
> sale on 8/5!! (I know you would have made a big deal on this one,
> since it is the day before the CC. You would say it is proof that
> the quarter was bad or some crap like that. I know how your type
> thinks.)
>
> These are planned sells that insiders have no way of changing. The
> sales were decided by the company, not the officers themselves.
>
> You want the rest of the dates? Here you go: 8/5/09; 8/19/09; 9/3/09;
> 9/18/09; 10/2/09; 10/21/09; 11/4/09; 11/18/09; 12/3/09; 12/23/09;
> 1/6/10; 1/21/10; 2/5/10; 2/18/10; 3/4/10.
>
> Once again, I offer EVERYONE to come to Satwaves to see the TRUTH.
> http:/satwaves.com
>
> David "Newman" Phillips
> newman@satwaves.com
On Aug 01 12:51 AM SIRI-Doom wrote:
> Wall St Consensus vs. Performance
> 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.
>
> STARS Report 07/25/2009
> 12-Mo. Target Price
> $0.50
> $0.50
> $0.50
> In May, SIRI reported lackluster results for the 2009 first quarter,
> which was notable for the company's first ever loss of subscribers
> in its primary OEM channel, amid continued auto industry woes, which
> recently culminated in bankruptcy filings by two of Detroit's Big
> Three manufacturers.
>
> 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.
>
> $6.8 billion of unused net operating loss carryforwards.
>
> loss In May
> $-0.07, representing 70% of the total annual estimate
> 70% of the total annual estimate
> loss