CEO Mel Karmazin Buys 2 Million Sirius XM Shares 33 comments
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I didn’t think it was possible, but I am actually more excited about this insider stock purchase by Mel Karmazin than I was following the approval of the merger. This could not have come at a better time for Sirius (SIRI) and its investors, as the stock has been in free-fall mode lately.
It has been my opinion that the company had to do something to reignite investor confidence. In fact, just 2 days ago I wrote that Mel and Company should buy shares for just this reason! This is a huge step in the right direction and should signal that a bottom has been reached and the worst is over. At the very least shorts have been put on notice that company executives are willing to buy at any time. I would not be surprised to see Mr. Parsons step it up himself and follow through as well.
Mr. Karmazin increased his position to 8,500,000 shares. This latest purchase of 2 million shares came at a cost of 1.3732 per share, for a total investment of 2,746,400.00 (plus commissions). With Monday’s purchase, Karmazin owns $11.8 million of the stock directly and 33,800 shares through a retirement plan.
Coming just days before Sirius is to release Q2 numbers, this can only be seen as a positive to Wall Street critics.
Position: Long SIRI
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This article has 33 comments:
then we will see this stock move. otherwise, nice gesture but too little too late.
come on howard, spend a little cash on yourself.
"Hurry-hurry, right this way. Don't push, don't shove there's plenty of shares for everyone. A little hair of the dog that bit ya friends right here in Uncle Mel's Blue Dog Elixir."
Recommended reading for all Sirius "longs" . . . "Eyeing the Flash"
In carnival parlance, or in Wall Street water-cooler talk, Mel buying 2mm shares is referred to as "building a tip" and the unfortunate "longs" are little more than easy marks.
There are CEOs who buy stock just for PR...to make morons like you think he has a real reason to buy it. That way he cannot lose right? As well, when you are paying a CEO an INSANE amount of compensation, tossing a few million here and there is nothing. Those shares were indirectly goven to him by YOU GUYS -shareholders.
Face it. This company is finished. It's just a matter of time. I knew a long time ago they wouldn't make it. Only the most brainless people bought this stock - typically the most desperate, uneducated, broke people looking to strike it rich...lol...good luck.
It's both sad and funny to see so many people who know nothing about investments, yet who spend so much time with them. It's really amazing. The worst part for you people is that you don't even realize how lost you are. That's one of the worst things about being ignorant. You don't even realize you are.
Yea SIRIs Q2 numbers can ONLY be positive to Wall Street, just like all of the other "positive" events that have caused the stock to fall...the merger? insider buying? etc.
Listen kids, I'm only going to say this once. Wall Street is only slightly clinging on to the dog until they do the banking business. After that they will drop it like a rock, as it deserves. And guess who will be holding when it tanks?? Suckers.
I can't wait to see what these kids will say to you once this company files for bankruptcy protection. It's gonna be entertaining as hell. LOL
Nas is up 67
Mel Bought 2mil shares
Siri stock up .02 cents
Yup it's a winner !!! LOL !
ALL ABOARD .. now leaving to Delisting town , then on to Bankruptcy land. LOL !!!!
www.newratings.com/en/...
Average price target is $3.27.
Lehman just lowered their target from $4.90 to $2.10 on 8/5/08
What I'm trying to figure out is why you have to make personal attacks and imply that anyone investing in SIRI is an idiot. Are the 41 mutual funds that took up NEW positions in SIRI in the last week also complete idiots? Is it part of their business plan to lose money? Come on man...any stock selling for less than 5 bucks is a spec play at best. Don't you think we know that? Don't you think we realize that merely playing the odds SIRI is high risk? You think only morons have money invested in SIRI? Honestly, I don't care what you think. I've got a fair amount of money invested in SIRI (over $50K) ....maybe that's a lot of money to you...it's not to me. If SIRI goes Chapter 11, it won't effect the quality of my life in the slightest. Is that what bothers you so much? The fact that people who are actually successful disagree with your 40 hour a week work-a-day blue collar mentality? I'm wealty because I am willing to take calculated risks. You are obviously the type that will rely on Social Security for your retirement and Medicaid for your insurance. You like the safety of that 0.05% interest rate you get on your 401K money market fund. And you know what...that's fine for most of the rabble like you. Those of us who are willing to take the risk to invest in emerging technology and be richly rewarded for it a few years down the line will be the people who will be supporting you when you're too poor, sick, and old to take care of yourself.
It's a burden we accept.
On Aug 05 09:23 PM Chapter 11 wrote:
> Dow is up 331
> Nas is up 67
>
> Mel Bought 2mil shares
>
> Siri stock up .02 cents
>
> Yup it's a winner !!! LOL !
>
> ALL ABOARD .. now leaving to Delisting town , then on to Bankruptcy
> land. LOL !!!!
I am not making fun of anyone, sorry if it seems that way. I owned siri for two years now. bought & sold , Bought & sold, I lost money on this deal as well, I just needed some comic relief thats all.
Sorry if I offended you or anyone else.
I wish you luck on your investment !
Imagine the influx of non-automobile subscriptions when Sirius announces the SIRIPhone application!!! Get your headphones Jack, in a few months we will be listening to Brett Favre crying to the world about how bad he has it while on the crapper on our phones!!!
Next as to what Mel has bought in SIRIXM and what kind of money he has made. This is why you have no glue what you are talking about.
11/19/04 - 1,500,000 purchase @ $5.3589; cost $8,038,350
01/12/06 - 1,000,000 purchase @ $6.2085; cost $6,208,500
05/30/06 - 1,000,000 purchase @ $4.468; cost $4,468,000
08/04/08 - 2,000,000 purchase @ $1.3732; cost $2,746,400
Total purchases: 5,500,000 shares for $21,461,250; cost basis is $3.902
Next, I want to point out his cash salary and bonuses...
Mel Karmazin
2004 Salary: $147,436 Bonus: $0.0
2005 Salary: $1,250,000 Bonus: $2,200,000
2006 Salary: $1,250,000 Bonus: $3,000,000
2007 Salary: $1,250,000 Bonus: $4,000,000
2008 Salary: $1,250,000 Bonus: $4,000,000 (projected)
Total cash earnings: $18,347,436
Plus you moron, this shows that when compared to what he would have made at Viacom he lost almost 80 million in the same time frame. If he would have just stayed at Viacom.
The most important news of this purchase is the fact that we can see that the "self proclaimed" great CEOs that this country holds up on a pedestal aren't worth the money we're paying them.
They seem to have no clue whatsoever.
No CEO is worth more than $ 100,000 a year. Shareholders that buy into companies where the CEO is making more than that unfortunately, desire what they get.
A CEO that really cares about the future of the company he works for would not take more than $ 100,000. Instead we buy into companies where the CEO and his cronies are draining the profits of their companies into their pockets.. foolish we are.