The Sirius/XM Disaster: The Ashes of the FCC 27 comments
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I'll say what is currently on everyone's mind. What a complete disaster this whole Sirius / XM (SIRI) situation has become. As I write this I have watched SIRI officially become a penny stock again; levels that have not been seen since it emerged from bankruptcy a few years ago. The stop loss is your best investment friend, folks.
How can our Government have allowed the FCC to drag their feet for 18 months without mandating a time restriction on future decisions? Yes, yes, of course we all realize that there are many other important issues to be addressed that our Government is dealing with. The energy crisis that caused the auto crisis and food crisis, the housing crisis that caused the credit crisis, the Iraq crisis that caused a world crisis, and so on and so forth. I would, however, like to point out that gross negligence of this magnitude in one of our branches of government certainly deserves a second look at a minimum. After all, our whole system hinges on public faith. Take a look at the consumer confidence index right now and you will see the level of faith I speak of.
Why did they not pay attention to what every professional analyst in the world was screaming? The longer the merger decision was put off, the more damage they do to the company. Think about that. The FCC knowingly damaged a company. Either an acceptance or a rejection of the merger in a timely manner would have put Sirius in a much better position. Anyone with an IQ over 50 and just a little bit of morality would have acted upon this issue regardless of NAB opposition. Ah, morality and politics, what am I thinking? We cannot tarnish that FOR SALE sign now can we?
Kevin Martin, Michael Copps, Jonathan Adelstein, Deborah Tate, and Robert McDowell: You have done the NAB's dirty work for them. Please accept my heartfelt congratulations on being one of the worst teams of politicians in history.
Run Forest, run.
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This article has 27 comments:
Dear FCC Board,
I won't hide the fact that I have been a Sirius Satellite Stock-holder for at least 6 years. I own the stock and purchased shares for my 2 sons as college graduation presents. I had faith in this new idea that would do a better job delivering what consumers wanted in pay-radio.
Your Board was directly responsible for the impetus of the current decline in the stock value. Your lack of foresight and deplorable timing with regard to making a decision on the merger with XM was more than just bad judgement; it was a forfeiture of your responsibilities as a government agency.
Voting up or down in a timely manner was all we asked. I now see why Washington is broke and why change is needed. I hope you all have your bags packed because whomever wins the Presidential election should make removing each one of you a priority the first day in office.
You have abrogated your responsibilities. Besides being a Siruis/XM stockholder, I am also an American taxpayer who is ashamed of the way your committee did business.
On Sep 11 07:10 AM Mark 1154 wrote:
> Copy of email sent to FCC Board:
>
> Dear FCC Board,
>
> I won't hide the fact that I have been a Sirius Satellite Stock-holder
> for at least 6 years. I own the stock and purchased shares for my
> 2 sons as college graduation presents. I had faith in this new idea
> that would do a better job delivering what consumers wanted in pay-radio.
>
>
> Your Board was directly responsible for the impetus of the current
> decline in the stock value. Your lack of foresight and deplorable
> timing with regard to making a decision on the merger with XM was
> more than just bad judgement; it was a forfeiture of your responsibilities
> as a government agency.
>
> Voting up or down in a timely manner was all we asked. I now see
> why Washington is broke and why change is needed. I hope you all
> have your bags packed because whomever wins the Presidential election
> should make removing each one of you a priority the first day in
> office.
>
> You have abrogated your responsibilities. Besides being a Siruis/XM
> stockholder, I am also an American taxpayer who is ashamed of the
> way your committee did business.
Did you see/hear Pelosi demanding oil companies give govt royalties if allowed to off shore drill like it was govt's right to punish? At all our elections we better get it right.
If the FCC had made a decision within it's 180 day time clock like it was supposed to, this would not be an issue. 180 days are up, we have not collected enough information to approve the merger, so we will deny it. Applicant's can refile with more information. Done. Both companies would be thriving right now, and the stock price would not be where it is today.
The government screwed the pooch on this one. Good article Gino.
Heres how a free market stock works.
As buying interest hits a price to the ask side, investors whoare trying to sell will go to the next level, or but a limit order in for a penny over, and etc... etc.. trying to get the highest price. No one justs keeps randomly throwing there price in at the same tick, thats not how it works. As it clears the ask window , the price moves up to the next tick, etc.. etc.. same with the down. Yes shares will be thrown in at those levels at the last second if you think it wont uptick, but when you see 10000 shares in the ask, and it takes 1 million shares bought at that price and it doesnt move up, someone is intentioinally "throwing shares in at the price over and over to refill the ask, just as it is about to uptick. That is illegal blatant stock manipulation. Stock wont move up till THEY allow it too. This proves manipulation to the down side, which means someone is illegally pushing this stock down, cause they know it would be 4 dollars by now on pure speculation alone. With the buying interest this stock has had of REAL news, and not OPINION, it has never moved up on REAL news, and thats what drives a stock, not OPINIONS. Why did not one analyist say that the guidance was understated? They know it was, but used that info to give their illegal manipulated price apparent legitimacy.Normal stocks dont move this way.
They use this to keep stocks from going down too. All major banks use this strategy, why financials arent all under 10 dollars by now, like they should be. If you wonder how so stocks have lived to see the day still, like how LEH got back to 20 in the middle of their bankrupcy issues, is beyond me, and their is no mention of bankrupcy on Sirius, and it losses 70 percent of its value, and this is AFTER the merger and synergies. The time for approval in the larger picture is irrelevant, and since they didnt use one dime to pay for XM, just your common stock value, its only hurt stockHOLDERS, not the company bottom line. That was hurt only temporarily as sales seemed to increase ANYWAY, YTY. This market is a joke, the SEC is a joke, and Gino is a joke for writing such a dumb article. Its official, either Gino is in on it with them, or hes not intelligent enough or knowledgable enough to be writing financial articles. His article today should read:
"All Sirius stockholders sign my letter to jointly file a lawsuit against Goldman Sachs(holders of the bonds) for intentially trying to tank a stock. Find out whoever is doing this, the SEC knows right now who it is. So does Sirius. They need to come public and share with the stockholders what is really going on. He hinted at it on Cramers show, and no one ran with it. Just completely ignored, now some idiot author is trying to blame the FCC for this. LOL LOL
Just be lucky they appoved it at all, but only after they got their paws on it(minority owned channels). The they would be "the powers that be."
Do you people even realize that every TOYOTA sold will next year have Sirius in it too now, and im sure the new receiver that receives both Sirius and XM will be in it. Used car market, all the talent, sports, GPS, song downloading, etc...
There are hundreds of stocks performing better with more debt and more uncertain futures. WM is trading at $2 today. Id take that. That company is in the toilet, right now, literally. If Sirius wanted too, do you people realize they have enough cash on hand to pay off the first debt entirely.
Interesting posts. So are you watching the level 2 streaming quotes? (I'm just now learning about such things). So why do you think this manipulation is happening? By "throwing" shares at a certain price aren't these shares being sold at a loss just to keep the price down? Do you think naked shorting of the stock is still occuring? At some point won't this have to come to an end and then maybe the powers that be pump this stock in the other direction? I'm just trying to wrap my head around everything that is goin on here. This investment has been a total nightmare and I want to know what is going on.
Heres how it works. Its a net zero gain.
1. Short at 1.35.
2. Buy at 1.34.
3. Short at 1.34
4. Buy at 1.33.
Repeat till you have a $1 stock. Yes i study streaming and buying interest. Sellers mentality (legitamite) is to get a higher price than you paid. When you see a stock about to tick up, you dont put in the ask, you RAISE the bid. Thats the only way stocks every go up.
When the ask is filled, its goes to the next ask price. Of course sometimes this isnt true. But it happens always with Sirius, and at certain price points. When you see Sirius jump 10 percent, you can bet your ass their loading up and legitamite shares too. They dont need to naked short it, the banks were given the shares by the co conspiriters(Sirius satellite). To break the shorts you have to get above 2-2.50 area. To break all the bondholder shorts you need to hit 4, and then they convert to shares, it takes a temporty dilution hit to 2ish, and its clear up from their. At that point 250 MILLION SHARES would be returned to Sirius, as their hedge will no longer be necessary, as the bondholders will be out, and Sirius wont have to pay that debt back. Converibles are just that, converted to true stock. They can make more that way. They will convert to 1.87, and the shares repurchased on the open market and returned at 1.50. Thats why I know it will go much higher than those prices. Mel didnt do a last minute financing, he got EXACTLY THE FINANACING HE WANTED. Perfect to drop the stock, rebuy low, and give the banks what they want. A fat return on a sure thing. The uncertainty in their debt refinancing is being used by the banks to get in lower. They wont bankrupt the company, because banks cant think long term anymore, they needs profits RIGHT NOW, or handed you noticed?
This is a time game. Its played sometimes in seconds.
Number of stocks purchased(buying interest) is greater than the number of stocks sold(selling interest). This sentiment is usually driven buy news, market factors, or even random buying at the same time, momentum trading, etc...
If you see a stock that normaly doesnt move take off with buying interest, you can quickly reverse the sentiment by simply defeating that time window of interest. Interest must be fast and intense to overcome shorting cycles. It must not be shallow, or speculative, or of weak hands, it must be hard, legitamite buying interest. When this sudden buying interest causes a price increase you get momentum traders jumping on, interested parties peaking interest, and buy points hit, causing it to rise further. Then you have sell points hit, momentum traders getting out, and you get a decline. Bargin shoppers, legitamite buying interest picks up because of the drop, and it goes back up again. Etc... etc.... Sirius does not trade this way. All buying interest in absorbed into a black hole. Only with massive thrusts does it go up 10 cents and then right back down once the interests abades, and it doesnt get a normal jump, this is irregular and illogical market behavior, and thus you get a bigger faster drop right after. Its hard to explain, hope Ive helped a little.
On Sep 11 10:13 AM *Newman* wrote:
> Sean, you do realize that about 750 million of the 1 billion that
> Sirius now has to refinance came from XM right?
>
> If the FCC had made a decision within it's 180 day time clock like
> it was supposed to, this would not be an issue. 180 days are up,
> we have not collected enough information to approve the merger, so
> we will deny it. Applicant's can refile with more information. Done.
> Both companies would be thriving right now, and the stock price would
> not be where it is today.
>
> The government screwed the pooch on this one. Good article Gino.
BUMP!