Will XM Shares Still Exist on Monday?

Amid all of the merger news, there is one common item that many seem to question. Will XM (XMSR) shares still exist on Monday? The answer in my opinion is YES.

The merger deal specifies that each XM share will receive 4.6 shares of Sirius (SIRI) once the deal is consummated. While regulatory approval is in hand, Sirius and XM have not yet consummated the deal, and until they do, XM shares will still exist.

In my opinion, Sirius and XM likely have a few financing items to accomplish over the weekend and on Monday, before they can get down to the proper authorities to set the deal in stone. This could cause a bit of a race. Sure, the NAB or another organization can try to throw a wrench into the works, but most agree that such an effort would be futile. Sirius and XM will be doing everything they can to get this deal finalized.

This could give another day or two of trading. Readers will likely see some roller coaster trading as shorts unwind their positions, those on the sidelines try to get a quick play on the spread, and the companies and organization jockey for headlines. Through all of that, what investors need to remember is that the merger has received regulatory approval. No matter what your trading strategy, this fact will remain constant until the paperwork is finally filed.

Position - Long Sirius, XM

Comments

[*Newman*:]

If it helps, I just placed my sell orders for XMSR at $20 and SIRI at $4.25 just in case I miss a good pop early in the morning. Other than that, I plan on being at my computer all afternoon tommorrow to enjoy the action.

2008 Jul 27 11:02 PM

[James Davis:]

I can guarantee that 99% of the posts here are clueless.

I can also say this co will be bankrupt within 18 months

2008 Jul 28 12:51 AM

[Merger Mania:]

Yawn...will NAB and shorts ever give up?


On Jul 28 12:51 AM James Davis wrote:

> I can guarantee that 99% of the posts here are clueless.
>
> I can also say this co will be bankrupt within 18 months

2008 Jul 28 07:04 AM

[RReagan:]

Still waiting for that big jump, up .05 this morning!! WOOHOO!! Closing in on that $4 per share merger bump!!! LOL

2008 Jul 28 09:38 AM

[sn0w:]

Awwww... $#!T! What happened?? Down, big-time... Looks like James Davis was correct... :(

2008 Jul 28 10:29 AM

[mudslinger:]

I love these stocks! Bad news they go down! No news they go down! Good news they go WAY down! Price targets out there of $4, 4.50 etc. and nobody is interested in buying these stocks on great news and what seems to me to be a pretty positive earnings release...revenues up 25%, subs up, loss down. Any theories? Is this buy the rumor sell the news? Is this fear of dilutive refinancing? Are the Merrill Lynch, Citi and other bullish analysts just considered to be ignorant fools with no credibility? Are these companies closer to bankruptcy than we think? IS THERE ANYTHING THAT CAN MAKE THESE STOCKS MOVE UP?

2008 Jul 28 11:06 AM

[163888:]

People playing games with it. SIRI just said they were going to delute the stock by 350 million shares. Both are no big deal to the long term investor in SIRI. I just bought again after saying I would not put anymore of my original investment back in. As I said before, eveytime it does this, less and less shares become avalible although it is only 2,000 shares I am sure I am not the only one.

2008 Jul 28 11:45 AM

[163888:]

mudslinger, I said before TIME. Next go read Brandons article on Sirius Buzz he said people maybe playing with this stock to get investors mad, so they sell. From what I read on various boards, that is a good theory because it is working.

2008 Jul 28 11:50 AM

[killerkaul:]

163888............. I'm with you, just bought another 421 shares of xmsr at 8.50. Long siri/xmsr.

2008 Jul 28 12:00 PM

[chicagogary:]

I also bought 200 more xmsr 8.68 and 500 siri@ 2.06. This is a buying opportunity for the long term holder people!

I am in for the PARTY in VEGAS in the future!

2008 Jul 28 12:03 PM

[163888:]

mudslinger, If you want a common sense opinion, look at it this way. First, I personally have no problem with the short timers (people that just got in for some kind of pop in the stock price due to the merger) getting mad and getting out. These people would have been the ones that would have sold anyway at between 3 and 4. They would not have stayed in anyway and would have kept the price down but just at a higher price point. So as a person in for the long term I could care less.

2008 Jul 28 12:03 PM

[chicagogary:]

163888 I always look forward to your posts. They are intelligent well thought out and a lot of common sense

2008 Jul 28 12:05 PM

[killerkaul:]

163888............. look at mtl down on scrutiny of V. Putin. Could be a great bargain on ROW play after dust settles. Time for the homework.

2008 Jul 28 12:06 PM

[killerkaul:]

163888......... I'm assuming you bought 2000s siri not xmsr. WHY NOT XMSR, SINCE IT IS DROPPING A LOT?

2008 Jul 28 12:09 PM

[Joe Amature:]

Here we go.

2008 Jul 28 12:20 PM

[163888:]

Hey kiillerkaul, I woke up at the right time. I saw where it was and read a few articles then bought. I had thought something happen that ether SIRI or XMSR pulled out. When I saw the only bad news around was that SIRI had only gotten 275,000 net subs and was going to delute 350 million shares to get free cash, I bought. While I will sell those at 3 and the others I got at 2.25 for 3.5, they are in until at least that and will be off the market till then. I feel there is no reason for the stock to have gone down. The companys future is much better then it was 6 months ago, or even a year or 2 years ago.

chicago gary, you never said why you changed your name, from heynow913.

2008 Jul 28 12:21 PM

[163888:]

killerkaul, you should know you scared the shit out of me with that post a while back. Plus I had bought 500 back the last time XMSR hit 8 I also have them at 9 and 10 I will buy XMSR again at 7 it was close not to long ago but never got there.

2008 Jul 28 12:29 PM

[chicagogary:]

i like chicago gary better. i wont use hewnow913 anymore

2008 Jul 28 12:37 PM

[chicagogary:]

titanic?!!!!....it turned out to be a money making movie!

2008 Jul 28 12:39 PM

[Candy617:]

Wow! I didn't expect this today.

2008 Jul 28 04:19 PM